THE PRINCIPAL COMMISSIONER OF INCOME TAX vs. SRI.SALIM T.K.

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ITA/17/2017HC KeralaKLHC01026093201703 January 2022Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR.JUSTICE BASANT BALAJI4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue was not maintainable. The reasoning was based on the fact that the valuation of the appeal was less than the limit prescribed by the CBDT Circular. The Court explicitly referred to the Supreme Court's judgment in S.C. Naregal v. Commissioner of Income Tax, which held that appeals falling within the purport of the CBDT Circular should be dismissed. Therefore, applying this precedent, the High Court found the present appeal to be not maintainable. The operative direction was to dismiss the appeal. No issues were expressly left undecided.

What were the facts?

The appellant is the Principal Commissioner of Income Tax (Central), Kochi (Revenue), and the respondent is Sri. Salim T.K. (Assessee). This appeal is filed by the Revenue against the order of the Income Tax Appellate Tribunal, Cochin Bench, dated October 25, 2016, pertaining to Assessment Year 2005-06. The High Court noted that the valuation of the subject appeal was less than the limit prescribed by a CBDT Circular. The Court referred to a Supreme Court judgment in S.C. Naregal v. Commissioner of Income Tax, which dealt with the effect of CBDT Circulars on appeals falling within their purview.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable, given that its valuation is below the monetary limit stipulated by the CBDT Circular? The Revenue, as the appellant, contended that the appeal should be heard on its merits. However, the judgment does not explicitly record the Revenue's specific arguments on the merits of the case. The High Court's decision hinges on the applicability of the CBDT Circular and the Supreme Court's ruling in S.C. Naregal. The Assessee, as the respondent, would likely have argued for the dismissal of the appeal on grounds of non-maintainability due to the valuation falling below the prescribed limit, relying on the precedent set by the Supreme Court.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR.JUSTICE BASANT BALAJI MONDAY, THE 3RD DAY OF JANUARY 2022 / 13TH POUSHA, 1943 ITA NO. 17 OF 2017 AGAINST THE ORDER/JUDGMENT IN ITA 214/2016 OF I.T.A.TRIBUNAL,COCHIN BENCH APPELLANT/S: THE PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL) KOCHI. BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/S: SRI.SALIM T.K. GREENLAND GARDENS, PERUMBAVOOR, ERNAKULAM-683 542 BY ADVS. SRI.M.GOPIKRISHNAN NAMBIAR SRI.K.JOHN MATHAI SRI.JOSON MANAVALAN SRI.KURYAN THOMAS SRI.PAULOSE C. ABRAHAM THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 03.01.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

ITA 17/2017 -2- JUDGMENT S.V.Bhatti, J. Heard Adv.Navaneeth N. Nath and Adv. Kuryan Thomas for parties. 2. The Principal Commissioner of Income Tax (Central), Kochi/Revenue is the appellant. Mr.Salim T.K, Greenland Gardens, Ernakulam/Assessee is the respondent. The subject appeal is at the instance of Revenue from the order of Income Tax Appellate Tribunal (for short ‘the Tribunal'), Cochin Bench in ITA No.214/Coch/2016 dated 25.10.2016. The appeal deals with the Assessment Year 2005-06. 3. The value in the appeal is less than the limit prescribed by CBDT Circular. The Supreme Court in the judgment reported in S.C.Naregal v Commissioner of Income Tax1 has considered the effect of CBDT Circular and dismissed the 1 (2019) 418 455 (SC)

ITA 17/2017 -3- appeal coming within the purport of CBDT Circular. 4. The valuation of the subject appeal since is less than the limit stipulated by CBDT Circular, the judgment of Apex Court in S.C.Naregal (supra) is applicable to the appeal.

Referring to the Supreme Court judgment and the latest circular, we are of the view that the appeal is not maintainable, hence is dismissed. Sd/- S.V.BHATTI JUDGE sd/- BASANT BALAJI JUDGE JS

ITA 17/2017 -4- APPENDIX PETITIONER'S ANNEXURES ANNEXURE A COPY OF THE ASSESSMENT ORDER DATED 28.12.2009. ANNEXURE B COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 19.3.2012. ANNEXURE C COPY OF THE CONSEQUENTIAL ASST.ORDER OF THE ASSESSING OFFICER DATED 14.3.2013. ANNEXURE D COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 22.02.2016. ANNEXURE E COPY OF THE ORDER OF THE TRIBUNAL DATED 25.10.2016. ANNEXURE F COPY OF THE COVERING LETTER ANNEXURE G COPY OF THE NET WEALTH STATEMENT

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