The Calcutta High Court has dismissed an appeal filed by the Income Tax Department citing low tax effect in line with prevailing policy directives issued by the Central Board of Direct Taxes.

The Bench of Justice Rajarshi Bharadwaj and Justice Uday Kumar passed the order while hearing the appeal filed by the Principal Commissioner of Income Tax, Asansol, against the respondent-assessee. The tax effect by virtue of relief given by the first appellate authority is less than Rs.60,00,000/-. As per CBDT Instruction bearing No.9 of 2024 issued on 17th September, 2024, CBDT has directed its subordinate authorities not to challenge the order of ld. CIT(Appeals) before Tribunal if tax effect by virtue of relief given by the CIT(Appeals) is less than Rs.60,00,000.

At the outset, the Court addressed a delay of 264 days in filing the appeal. Despite strong opposition from the assessee’s counsel, the Bench accepted the explanation provided by the Revenue and condoned the delay, allowing the interlocutory application (GA/1/2026).

However, upon examining the merits of the case, the Court declined to interfere with the earlier order of the Income Tax Appellate Tribunal dated November 28, 2024.

The ITAT had dismissed the Revenue’s appeal on the ground that the tax effect involved was below ₹60 lakh, which is the monetary limit prescribed under CBDT Instruction No. 9 of 2024 dated September 17, 2024.

The Tribunal observed that as per the CBDT’s directive, departmental appeals should not be pursued where the tax effect falls below the specified threshold unless the case falls under certain exceptions. Finding no such exception applicable, the ITAT held the appeal to be non-maintainable.

At the same time, the Tribunal granted liberty to the Revenue to seek revival of the appeal by filing a Miscellaneous Application, in case subsequent verification reveals that the tax effect exceeds the threshold or falls within an exception.

Endorsing the Tribunal’s reasoning, the High Court emphasized adherence to the CBDT’s litigation policy aimed at reducing unnecessary tax disputes and judicial backlog.

The Bench noted that the tax effect in the present case was “much less” than the prescribed limit and therefore found no justification to interfere with the ITAT’s decision.

The High Court dismissed the appeal along with the connected application bringing the litigation to a close in favor of the assessee.

Case Details

Case Title: Principal Commissioner Of Income Tax Asansol Vs Smt Kamala Devi Patni

Citation: JURISHOUR-631-HC-2026(CAL) 

Case No.: ITAT/41/2026

Date: 25/03/2026

Counsel For  Petitioner: Prithu Dudhoria, Adv.

Counsel For Respondent: Brijesh Kumar Singh, Adv.

Read More: GST Writ Filed Beyond 90+30 Day Appeal Limit Under CGST Act Dismissed: Jharkhand High Court