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ITAT Kolkata dismisses revenue appeals for AYs 2007-12 due to lack of grounds. The Appellate Tribunal ITAT Kolkata dismissed all 5 appeals filed by the revenue against the Ld. CIT(A) order for AYs 2007-08 to 2011-12. The revenue ...
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ITAT Kolkata dismisses revenue appeals for AYs 2007-12 due to lack of grounds.
The Appellate Tribunal ITAT Kolkata dismissed all 5 appeals filed by the revenue against the Ld. CIT(A) order for AYs 2007-08 to 2011-12. The revenue failed to explain the grounds of appeal, showing a lack of application of mind. The Tribunal noted the acceptance of the companies' existence and creditworthiness in the remand report but refrained from commenting on the merits. As the revenue made no effort to challenge the Ld. CIT(A) decision or provide revised grounds, the appeals were dismissed on 02.08.2017.
Issues: - Appeals filed by revenue against Ld. CIT(A) order for AYs 2007-08 to 2011-12. - Identical issue in all appeals - tax effect above threshold limit specified in circular. - Lack of explanation from revenue on grounds of appeal. - Non-application of mind by revenue in filing appeals. - Existence and creditworthiness of companies lending to assessee accepted in remand report. - No attempt by revenue to challenge Ld. CIT(A) decision.
Analysis: - The Appellate Tribunal ITAT Kolkata heard 5 appeals by the revenue against the Ld. CIT(A) order for AYs 2007-08 to 2011-12. The common issue in all appeals was the tax effect exceeding the threshold limit specified in a circular. The Tribunal noted that the revenue failed to provide an explanation on the grounds of appeal, indicating a lack of application of mind in filing the appeals. This was similar to a previous case where the Tribunal observed a total non-application of mind by the revenue. As the revenue did not present revised grounds and failed to challenge the Ld. CIT(A) decision, the Tribunal dismissed the appeals.
- The Ld. Counsel for the assessee pointed out that the AO, in the remand report, verified and accepted the existence and creditworthiness of the companies that had lent money to the assessee. The Ld. Counsel argued that the AO had no valid grounds for the appeal based on this information. Despite this, the Tribunal refrained from commenting on the merits of the case. However, considering the lack of effort by the revenue to contest the Ld. CIT(A) decision and challenge the grounds of appeal, the Tribunal had no choice but to dismiss all the appeals filed by the revenue.
- In conclusion, the Tribunal dismissed all the appeals of the revenue due to the failure to provide valid grounds for appeal, lack of challenge to the Ld. CIT(A) decision, and the non-application of mind in filing the appeals. The order was pronounced in open court on 02.08.2017.
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