Revenue Fails to Substantiate ‘Exceptional Category’ Claim to Bypass Low Tax Effect Limit: Calcutta HC Dismisses Writ Petition Filed by Income Tax Dept [Read Order]
The Bench observed that the appellant had not clearly suggested which specific exceptional clause within para 3.1(h) was applicable to the present appeal.
![Revenue Fails to Substantiate ‘Exceptional Category’ Claim to Bypass Low Tax Effect Limit: Calcutta HC Dismisses Writ Petition Filed by Income Tax Dept [Read Order]](https://images.taxscan.in/h-upload/2026/05/25/2138085-revenue-fails-substantiate-exceptional-category-low-tax-effect-income-tax-dept-taxscan.webp "Revenue Fails to Substantiate ‘Exceptional Category’ Claim to Bypass Low Tax Effect Limit: Calcutta HC Dismisses Writ Petition Filed by Income Tax Dept [Read Order]")
The Calcutta High Court dismissed a Revenue appeal after the Principal Commissioner of Income Tax failed to substantiate claims that the case fell within an "exceptional category" to bypass the prescribed monetary limit for filing appeals, ruling that the Revenue Department cannot pursue litigation without clearly demonstrating the applicability of...
The Calcutta High Court dismissed a Revenue appeal after the Principal Commissioner of Income Tax failed to substantiate claims that the case fell within an "exceptional category" to bypass the prescribed monetary limit for filing appeals, ruling that the Revenue Department cannot pursue litigation without clearly demonstrating the applicability of specific exceptions.
Principal Commissioner of Income Tax-2, Kolkata, had filed the appeal against the respondent Ahinsha Management Private Limited for the Assessment Year 2010-11. The appellant sought to challenge the order of the learned Tribunal dated 24.02.2025. Despite a significant delay of 204 days in filing the appeal, the Division Bench of Justice Rajarshi Bharadwaj and Justice Reetobroto Kumar Mitra condoned the delay upon being satisfied with the explanation offered by the Revenue.
Counsel for the appellant admitted that the tax effect in the present matter was Rs. 26,17,600/-. This amount is substantially below the Rs. 2 crores limit prescribed by CBDT Circular No. 9/2024 and Circular No. 5/2024. To justify the filing, counsel argued the case fell under the "exceptional category" outlined in para 3.1(h) of CBDT Circular No. 5/2024, which permits appeals below the monetary limit under specific circumstances.
The Court perused the assessment order and appellate orders but found the Revenue’s submission lacking. The Bench observed that the appellant had not clearly suggested which specific exceptional clause within para 3.1(h) was applicable to the present appeal.
The Court stated it found "no reason to entertain this appeal" where the exception was merely cited without application of mind to the specific clause. Consequently, the appeal and connected application were dismissed solely on the grounds that the tax effect was below the Rs. 2 crores threshold.
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