2017 (11) TMI 899 - AT - Income Tax

Maintainability of appeal - tax effect - Held that - We note that in the instant case before us also, the Ld. CIT, DR could not give any explanation as to what grounds of appeal the revenue intends to assail before us. We concur with the observation that there is no application of mind while filing the instant appeals. The department has not cared even to file any revised grounds. In such a scenario, we have no other alternative but to dismiss the appeal preferred by the revenue. On merits, the assessee has brought to our notice that the Ld. CIT(A) called for the remand report wherein the AO in the remand report has accepted after due verification the existence and creditworthiness of the companies which has advanced amounts to the assessee. He relied on the remand report given by the AO and submitted that on merits the AO has no ground to file this instant appeal. We are not inclined to comment on the merits of the case as such. However, taking note of the grounds of appeal raised by the revenue, we are inclined not to adjudicate the same because we do not find any attempt made by the revenue to challenge the decision of the Ld. CIT(A). In such a scenario, we have no other alternative but to dismiss the appeals preferred by the revenue.

Summary

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.