Case Law Details
PCIT Vs Hilton Commodities Pvt Ltd (Calcutta High Court)
The Calcutta High Court condoned a delay of 118 days in filing the appeal after being satisfied with the explanation, allowing the application. The appellant submitted that the tax effect of Rs.1,22,97,242 was below the monetary limit prescribed under Central Board of Direct Taxes Circular No.9/2024 and Circular No.5/2024 but claimed the case fell under an exceptional category specified in para 3.1(h) of Circular No.5/2024.
Upon examining the records, including the assessment order, appellate order, and Tribunal’s order dated 24.02.2025 for AY 2009–2010, the Court found that the appellant failed to clearly identify which exceptional clause applied. Since the tax effect was below Rs.2 crores and no valid exception was demonstrated, the Court held that there was no reason to entertain the appeal. Accordingly, the appeal and the connected application were dismissed.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
The Court: Heard learned counsel appearing for the parties.
There is a delay of 118 days in filing the appeal. We are satisfied with the explanation offered for not preferring the appeal within time. Therefore, the delay is condoned. The application being GA/1/2026 is allowed.
Learned counsel for the appellant submits that the tax effect in this case is Rs.1,22,97,242/- which is below the tax limit as prescribed in the CBDT Circular No.9/2024 dated 17th September, 2024 and Circular No.5 of 2024 dated 15th March, 2024 but the case falls within the exceptional category under para 3.1(h) as per CBDT Circular No.5 of 2024 dated 15th March, 2024.
We have perused the application, the assessment order, appellate order of the learned Commissioner of Income Tax and the order of the learned Tribunal dated 24.02.2025 for the Assessment Year 2009-2010. We do not find any reason to entertain this appeal where the appellant has not clearly suggested which exceptional clause as read in para 3.1(h) as per CBDT Circular No.5 of 2024 dated 15th March, 2024 is applicable in the present appeal. As such, this appeal and the connected application being GA/2/2026 are dismissed as the tax effect in this matter is below Rs. 2 crores.
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