Tax Effect Below Threshold: Calcutta HC Dismisses Case

PCIT Vs Deepak Industries LTD (Calcutta High Court) Introduction: In a landmark decision, the Calcutta High Court has dismissed an appeal by the Income Tax Department against Deepak Industries Ltd, on the grounds that the tax effect in the case was below the threshold limit set by the Central Board of Direct Taxes (CBDT). The court’s decision has important implications for tax law and may set a precedent for future cases. Analysis: The case revolved around the questions raised by the revenue, specifically pertaining to errors in law, violation of Income Tax Rules, and failure in comparab...