2024 (11) TMI 1202 - HC - Income Tax

Appeal Dismissed: IT Department's Attempt to Add Rs. 3.58 Crore as Unexplained Cash Credit Fails Due to Low Tax Impact.

The Calcutta High Court dismissed the appeal by the Income Tax Department concerning the deletion of an addition of Rs. 3,58,00,000 as unexplained cash ... Maintainability of appeal on low tax effect - addition u/s 68 - HELD THAT:- As could be seen from paragraph 9 of the Memorandum of Appeal, the tax effect involved in this case is Rs. 1,16,15,310/-. If that be so, the revenue cannot pursue the matter further on account of the circular issued by the Central Board of Direct Tax being Circular No.9 of 2024. Accordingly, the appeal stands disposed of on the ground of low tax effect and the substantial questions of law suggested by the revenue are left open. The Calcutta High Court heard an appeal by the Income Tax Department challenging the deletion of an addition of Rs. 3,58,00,000 as unexplained cash credit by the Income Tax Appellate Tribunal for the assessment year 2012-13. The court disposed of the appeal due to low tax effect as per Circular No.9 of 2024, leaving the substantial questions of law open.