THE COMMISSIONER OF INCOME-TAX vs. M/S. SIR.M.VISVESHWARAYA CO-OPERATIVE BANK LTD

ITA/116/2014HC KarnatakaKAHC01012953201417 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that in view of CBDT Circular No. 21/2015, which enhanced the monetary limit for filing appeals before the High Court to Rs. 20 lacs and was clarified to apply retrospectively to pending appeals, the present appeal, having a tax effect below Rs. 20 lacs, was to be dismissed. The reasoning was based solely on the application of the aforementioned circular. The operative direction was the dismissal of the appeal. No issues were expressly left undecided.

What were the facts?

The appeal was filed by the Revenue (Commissioner of Income-Tax and Assistant Commissioner of Income-Tax) against an order passed by the Income Tax Appellate Tribunal (ITAT), Bangalore. The assessee is M/s Sir M. Visveshwaraya Co-operative Bank Ltd. The appeal was filed under Section 260A of the Income Tax Act, 1961. The Revenue's counsel presented a Circular No. 21/2015 dated December 10, 2015, issued by the Central Board of Direct Taxes (CBDT), which enhanced the monetary limit for filing appeals before the High Court from Rs. 10 lacs to Rs. 20 lacs. This circular was clarified to apply retrospectively to pending appeals. The Revenue's counsel stated that the tax effect in the present appeal was below the specified limit of Rs. 20 lacs.

What were the issues?

1. Whether the appeal filed by the Revenue is to be dismissed in light of CBDT Circular No. 21/2015, which enhanced the monetary limit for filing appeals to the High Court to Rs. 20 lacs, and the tax effect in the present appeal being below this limit. The Revenue argued that as per CBDT Circular No. 21/2015, the monetary limit for filing appeals before the High Court has been enhanced to Rs. 20 lacs and that this circular applies retrospectively. The Revenue further contended that the tax effect in the present appeal is below the enhanced limit of Rs. 20 lacs. Therefore, the appeal should be dismissed or not pressed. The judgment does not record any specific arguments from the assessee.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 17TH DAY OF DECEMBER, 2015

PRESENT

THE HON'BLE MR. JUSTICE VINEET SARAN

AND

THE HON’BLE MRS. JUSTICE S.SUJATHA

ITA No. 116/2014

BETWEEN

THE COMMISSIONER OF INCOME-TAX C.R.BUILDING, QUEENS ROAD, BANGALORE .

THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-3(1), C.R.BUILDING, QUEENS ROAD, BANGALORE.

...APPELLANTS

(BY SRI.G. KAMALADHAR-ADV)

AND

M/S SIR. M.VISVESHWARAYA CO-OPERATIVE BANK LTD., # 109, CORPORATE OFFICE, SHANKARAMUTT ROAD, SHANKARAPURAM, BANGALORE-560 004.

... RESPONDENT

(BY SRI. S. PARTHASARATHI & JINITA CHATTERJEE-ADVs)

THIS ITA IS FILED UNDER SECTION 260A OF INCOME TAX ACT, 1961, PRAYING TO SET ASIDE THE ORDERS PASSED BY THE ITAT, BANGALORE IN ITA NO.1693/BANG/2013 DATED: 25.10.2013, ETC.

THIS ITA COMING ON FOR HEARING THIS DAY, VINEET SARAN J., DELIVERED THE FOLLOWING:

JUDGMENT

Learned counsel for the appellants-Revenue has placed before us a recent Circular No.21/2015 dated 10.12.2015, issued by the Central Board of Direct taxes, wherein the monetary limit of the tax effect for filing appeals before the High Court has been enhanced from Rs.10 lacs to Rs.20 lacs. In paragraph-10 of the said Circular, it has been clarified that the same will apply retrospectively to pending appeals also, which, if below the specified tax limits, may be withdrawn/not pressed.

Learned counsel for the appellants has stated that the tax effect in the present appeal is below the specified limit of Rs.20 lacs.

Accordingly, in view of the Circular No.21/2015 dated 10.12.2015, the tax effect in this appeal being less than Rs.20 lacs, the appeal stands dismissed.

Sd/-

JUDGE

Sd/-

JUDGE TL

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