Principal Commissioner Of Income Tax 5 ... vs Machinery Agencies India
2026 Latest Caselaw 2040 Cal/2

Calcutta High Court

Principal Commissioner Of Income Tax 5 ... vs Machinery Agencies India on 18 March, 2026

Author: Rajarshi Bharadwaj

Bench: Rajarshi Bharadwaj

OD 3


                                ORDER SHEET
                                ITAT/217/2025
                              IA NO: GA/2/2025
                      IN THE HIGH COURT AT CALCUTTA
                     SPECIAL JURISDICTION (INCOME TAX)
                                ORIGINAL SIDE


            PRINCIPAL COMMISSIONER OF INCOME TAX 5 KOLKATA
                                  VS
                       MACHINERY AGENCIES INDIA


  BEFORE:
  The Hon'ble JUSTICE RAJARSHI BHARADWAJ
                     AND
  The Hon'ble JUSTICE UDAY KUMAR
  Date: 18th March, 2026.



                                                                           Appearance:
                                                                 Mr. Amit Sharma, Adv.
                                                        Mr. Abhishek Kr. Agrahari, Adv.
                                                                     ...for the appellant

                                                     Mrs. Sutapa Roy Chowdhury, Adv.
                                                            Mr. Sagnik Majumdar, Adv.
                                                         Ms. Anyapurba Banerjee, Adv.
                                                                   ...for the respondent

The Court: Heard learned counsel appearing for the appellant. Perused the

application and more specifically the Order of the Tribunal dated 31.01.2025.

Paragraphs 4, 5 and 6 of the Tribunal's order reads as follows:

"4. At the very outset, it has been argued by the ld. Counsel for the

assessee that the monetary limit of filing of appeal is less than the

prescribed limit and it is hit by tax effect.

5. The Ld. D.R submitted that his case lies under the exceptional

clause and according to him, the Ld. CIT(A) erred in law by deleting

the addition of Rs. 95,00,000/- on account of unsecured loan

credited u/s 68 of the Act and Rs. 10,60,192/- on account of bogus

expenses u/s 69C of the Act by ignoring the facts that the case of the

assessee is different from the fact for the AY 2014-15.

6. We have perused the order of Ld. CIT(A) and find that the Ld.

CIT(A) passed an order in favour of the assessee, keeping in view the

order passed by the Hon'ble ITAT, Kolkata against the same the

assessee for AY 2014-15. The Hon'ble ITAT in the said appeal has

been decided the matter in faovur of the assessee. The Order passed

by the ITAT in ITA NO. 2100/Kol/2018 for AY 2014-15 dated

30.09.2021 has also placed before us. Going over the order passed

by ITAT, Kolkata against the same assessee, we find that the Hon'ble

Bench has decided the case in favour of assessee for AY 2014-15 and

CIT(A) keeping in view of the order passed deleted the addition made

by the AO u/s 68 and 69 of the Act. Going over the facts of the case

we find nothing that the case of the assessee lies on the exceptional

clause. It is pertinent to mention here that tax effect is below the

monetary limit prescribed by the department to prefer appeal. We

also do not find any infirmity on merit in the order of Ld. CIT(A).

Accordingly, the appeal of the revenue is dismissed on merit as well

as tax effect.

In the result, the appeal filed by the revenue is dismissed."

As the quantum of tax effect in the appeal is much below the monetary

limit as prescribed by the CBDT's Circular being No.5/2024 F.No.

279/Misc.142/2007-ITJ(Pt.) dated 15 th March, 2024, as well as it does not fall

within the exception Clause as mentioned in paragraph 3.1(h) of the Circular

dated 15th March, 2025, the appeal filed by the appellant is dismissed.

Accordingly, the connected application, GA/2/2025 is also dismissed.

(RAJARSHI BHARADWAJ, J.)

(UDAY KUMAR, J.) Sp/