High Court at Calcutta · Judgments and reasoned final orders
Principal Commissioner of Income Tax-2, Kolkata v. M/s Radiant Commercial and Investment Private Limited
ITAT/192/2025 (IA No. GA/1/2025, GA/2/2025) ·
Section 68 share-capital addition of Rs. 1,95,50,000 deleted by ITAT; Revenue appeal with Rs. 48,54,112 tax effect held outside Clause 3.1(h) exception to CBDT Circular Nos. 5/2024 & 9/2024.
1. FACTS OF THE CASE
After condoning a 261-day filing delay in GA/1/2025, the Calcutta High Court examined the Revenue's appeal under section 260A challenging the ITAT's deletion of a Rs. 1,95,50,000 addition under section 68 in respect of share capital raised by M/s Radiant Commercial and Investment Pvt. Ltd. Although the reported tax effect was Rs. 48,54,112 (below the High Court monetary threshold in CBDT Circular No. 9/2024 dated 17.09.2024), the Revenue contended that the appeal fell within Clause 3.1(h) of CBDT Circular No. 5/2024 dated 15.03.2024 on organized tax evasion and invoked the 'source of source' and 'origin of origin' doctrines.
2. DISCUSSION BY THE COURT
Upon examining the assessment records and the Tribunal's order, the Division Bench held that the dispute did not fall within the exception clause under Clause 3.1 of CBDT Circular No. 5/2024 dated 15.03.2024 read with Circular No. 9/2024. The Court observed that the questions proposed by the Revenue did not pertain to issues of substantial legal importance warranting an exception to the monetary limit circular, and therefore no substantial question of law arose for consideration.
3. JUDICIAL DECISION
Finding that no substantial question of law arose and that the appeal did not qualify under Clause 3.1 of Circular No. 5/2024, the High Court dismissed ITAT/192/2025 along with connected application GA/2/2025.
4. OUTCOME
In favour of the assessee (M/s Radiant Commercial and Investment Pvt. Ltd.); Revenue appeal dismissed.
5. AKHB REVIEW POINT
AKHB analysis: Merely reciting 'organized tax evasion' or 'source of source' in proposed questions on a section 68 share-capital deletion does not automatically trigger the Clause 3.1(h) exception to CBDT Circular Nos. 5/2024 and 9/2024 where the tax effect is below Rs. 2 crore and the record discloses no organized evasion scheme.
Source and verification
Reviewed from the complete 4-page official High Court judgment PDF (20260119_WBCHCO0036862025.pdf, SHA-256: c043c7ba91ea0e0b318aa8391c2b09db1921869e2c9b8289782477b716f3a4d2).
Original PDF: 4 pages · SHA-256: c043c7ba91ea0e0b318aa8391c2b09db1921869e2c9b8289782477b716f3a4d2
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Refers to the Income-tax Act, 1961 and allied statutory rules/circulars as applicable to the relevant assessment years.
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