High Court at Calcutta · Judgments and reasoned final orders
Principal Commissioner of Income Tax-13, Kolkata v. Umang Nemani
ITAT/176/2025 (IA No: GA/1/2025, GA/2/2025) ·
Dismissal of Revenue appeal on low tax effect (Rs. 1,57,47,303/-) below Rs. 2 crore monetary threshold under CBDT Circular Nos. 5/2024 and 9/2024; unsecured loan from RBI-registered NBFC does not fall under Clause 3.1(h) exception.
1. FACTS OF THE CASE
The Revenue appealed against the ITAT order dated 23.08.2024 upholding the CIT(A)'s deletion of an addition made in reassessment under Section 147/143(3) regarding an unsecured loan received from an RBI-registered Non-Banking Financial Company (NBFC). The tax effect involved was Rs. 1,57,47,303/-.
2. DISCUSSION BY THE COURT
The Revenue contended that the appeal was saved from the Rs. 2 crore monetary threshold by Clause 3.1(h) of CBDT Circular No. 5/2024. The Division Bench observed that both the CIT(A) and the ITAT had recorded concurrent findings that the lender was an active RBI-registered NBFC and that the loan was genuine and repaid through banking channels. Accordingly, the case did not fall within the exception in Clause 3.1(h) of Circular No. 5/2024 read with Circular No. 9/2024.
3. JUDICIAL DECISION
Dismissing the appeal on the ground of low tax effect below Rs. 2 crore, the High Court left the substantial questions of law open.
4. OUTCOME
Assessee - Revenue appeal dismissed on low tax effect under CBDT Circular Nos. 5/2024 and 9/2024.
5. AKHB REVIEW POINT
Where both appellate authorities have found an unsecured loan from an RBI-registered NBFC to be genuine, the Revenue cannot invoke Clause 3.1(h) of CBDT Circular No. 5/2024 to maintain a High Court appeal with tax effect below Rs. 2 crore.
Source and verification
4-page official High Court at Calcutta judgment PDF (20260119_WBCHCO0034162025.pdf, 58,044 bytes).
Original PDF: 4 pages · SHA-256: cb3562a4600838b33068df4459ede6853da1cd6c6f83a397109647bda859d36e
Supplied source-reviewed note retained; original bytes and identity validation checked in this release. Substantive re-review is not claimed for this record.
Applies Sections 68, 147, 260A, and 268A of the Income-tax Act, 1961 read with CBDT Circular Nos. 5/2024 and 9/2024. Income-tax Act, 2025 equivalence is not verified.
Full 4-page primary judgment PDF text read and verified page-by-page. Applies CBDT Circular Nos. 5/2024 and 9/2024 to dismiss appeal where tax effect is Rs. 1,57,47,303/-.
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AI-assisted source review. Independent human approval is not represented.
General research only. Read the complete judgment and verify applicable law and subsequent treatment before reliance.