Commissioner Of Income Tax vs M/S. Vantage Advertising Pvt. Ltd
2023 Latest Caselaw 502 Cal/2

OD-9

                            IN THE HIGH COURT AT CALCUTTA
                          SPECIAL JURISDICTION (INCOME TAX)
                                    ORIGINAL SIDE

                                   ITA/334/2009
                                       WITH
                                   ITA/343/2009
                      COMMISSIONER OF INCOME TAX, KOLKATA-IV
                                        VS.
                        M/s. VANTAGE ADVERTISING PVT. LTD.

BEFORE :
THE HON'BLE JUSTICE T.S. SIVAGNANAM

And THE HON'BLE JUSTICE HIRANMAY BHATTACHARYYA Date : 20TH FEBRUARY, 2023

Appearance :

Mr. Prithu Dudhoria, Adv.

Mr. Soumen Bhattacharjee, Adv.

Ms. S. Das, Adv.

ITA/334/2009

The Court : - Heard learned Counsel for the either side.

This appeal filed by the revenue under Section 260A of the Income Tax Act, 1961

is directed against the order dated 30.6.2009 passed by the Income Tax Appellate

Tribunal 'C' Bench, Kolkata in ITA No. 1055/Kol/2008 for the assessment year 2005-

06. The appeal was admitted on 10.12.2009 on the following substantial question of

law :-

i) Whether on the facts and in the circumstances of the case the Income-tax

Appellate Tribunal erred in law in allowing deduction under Section 80IA

in respect of bus shelters without appreciating the fact that the same do

not qualify as infrastructural facilities and also do not form integral part of

the project as per provisions under Section 80IA of the Income-tax Act,

1961 ?"

It is submitted by the learned Advocate on either side that the tax effect involved

in this case is less than the threshold limit fixed by the CBDT. This submission is

borne out by record as could be seen from the order passed from Commissioner of

Income Tax, Appeals II, Kolkata dated 28.3.2008 where the tax which has been

demanded is Rs.57,50,496/-.

In the light of the same the revenue cannot pursue this appeal.

Accordingly, the appeal stands disposed of on the ground of low tax effect and the

substantial question of law is left open.

ITA/343/2009

Heard learned Counsel for either side.

This appeal filed by the revenue under Section 260A of the Income Tax Act, 1961

is directed against the order dated 30.6.2009 passed by the Income Tax Appellate

Tribunal 'C' Bench, Kolkata in ITA No. 1054 & 1055/Kol/2008 for the assessment year

2004-05. The appeal was admitted on 17.12.2009 on the following substantial question

of law :

i) Whether on the facts and in the circumstances of the case, the learned

CIT(A) was justified in law in upholding the judgment and order of the

learned Tribunal and thereby allowing provisions of 2,18,10,252/- when

the liability for the same was not crystalised during the year and it finally

got crystalised in the assessment year 2005-2006 at an amount of

Rs.1,03,00,000/- ?

ii) Whether on the facts and in the circumstances of the case, learned

C.I.T.(A) is justified in law in upholding the decision of the CIT(A) and

thereby allowing prior period expenses (net) of Rs.1,26,509/- by observing

that it represented only expenses and not receipts

We have heard learned Counsel for either side.

It is submitted by the learned Advocate on either side that the tax effect involved

in this case is only Rs.86,64,150/- and, therefore, it is well below the threshold limit of

Rs. One crore as fixed by the C.B.D.T. to file appeals before this Court or to pursue the

pending appeals.

In the light of the same observation, the revenue cannot pursue this appeal.

In the result the appeals stands disposed of on the ground of low tax effect and

the substantial questions of law are left open.

(T.S. SIVAGNANAM, J.)

(HIRANMAY BHATTACHARYYA, J.) Pkd/GH.