THE PR COMMISSIONER OF INCOME TAX FARIDABAD vs. THE REWARI CENTRAL COOPERATIVE BANK LTD

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ITA/103/2023HC Punjab & HaryanaPHHC01041258202319 December 2023Author: MR. JUSTICE GURMEET SINGH SANDHAWALIA,MS. JUSTICE LAPITA BANERJI1 pages

AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the revenue as not maintainable. The Court was not willing to accept the revenue's argument that the case fell under an exception to the monetary limits prescribed by CBDT Circular No. 17/2019. The Court reasoned that accepting such grounds would frustrate the purpose of the circular, which aims to prevent the filing of frivolous appeals, especially considering the low tax effect. Therefore, the appeal was dismissed on the preliminary ground of maintainability, without delving into the merits of the ITAT's order. No specific finding was made on the substantive issues that might have been before the ITAT.

What were the facts?

The Principal Commissioner of Income Tax, Faridabad (appellant/revenue) filed an appeal under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal (ITAT), Delhi Bench, dated October 13, 2022. The appeal pertained to Assessment Year 2012-2013 and involved the Rewari Central Co-operative Bank Ltd., Rewari (respondent/assessee). The tax effect in dispute was Rs. 7,72,500/-. The revenue sought to argue that the appeal fell under an exception to the monetary limits prescribed by CBDT Circular No. 17/2019, specifically due to an audit objection raised by the revenue audit.

What were the issues?

1. Whether the appeal filed by the revenue is maintainable before the High Court, given that the tax effect of Rs. 7,72,500/- is below the monetary limits prescribed by CBDT Circular No. 17/2019 for filing appeals under Section 260A of the Income Tax Act, 1961. Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The assessee is the respondent in the appeal before the High Court. Revenue's Contention: The revenue contended that the appeal falls under an exception to the monetary limits prescribed by CBDT Circular No. 17/2019, as the issue arose from an audit objection raised by the revenue audit.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Neutral Citation No. 2023:PHHC:163325-DB

IN THE HIGH COURT OF PUNJAB AND HARYANA

AT CHANDIGARH (121)

ITA-103-2023 (O&M) Decided on : 19.12.2023 The Pr. Commissioner of Income Tax, Faridabad ……Appellant(s) Versus The Rewari Central Co-operative Bank Ltd., Rewari ……Respondent(s)

CORAM : HON'BLE MR.JUSTICE G.S. SANDHAWALIA HON'BLE MS.JUSTICE LAPITA BANERJI

Present: Mr. Saurabh Kapoor, Sr. Standing Counsel for the appellant.

***** G.S. Sandhawalia, J. (Oral)

The present appeal has been filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Delhi Bench dated 13.10.2022 passed in ITA No.7691/Del./2019 regarding the Assessment Year 2012-2013. 2. As per the grounds of appeal the tax effect is of Rs.7,72,500/- which is apparently below the limits prescribed by the CBDT Circular No.17/2019 dated 08.08.2019 for filing appeal under Section 260A.

Counsel has endeavored to convince us that the case falls under the exception clause being audit objection raised by the revenue audit.

We are not willing to accept the said ground, keeping in view the low tax effect and purpose of the circular, thus, would be frustrated by filing such frivolous appeals. Resultantly, we dismiss the present appeal as not maintainable.

(G.S. SANDHAWALIA) JUDGE

(LAPITA BANERJI) 19.12.2023

JUDGE Naveen

Whether speaking/reasoned : Yes

Whether Reportable :

No SAILESH RANJAN 2023.12.22 15:10 I attest to the accuracy and authenticity of this order/judgment Chandigarh

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