THE COMMISSIONER OF INCOME TAX vs. M/S GERB VIBRATION CONTROL

ITA/121/2013HC KarnatakaKAHC01051398201317 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal stands dismissed in view of Circular No. 21/2015 dated December 10, 2015. The reasoning was based on the submission by the Revenue's counsel that the tax effect in the present appeal was below the enhanced monetary limit of Rs. 20 lacs. The Court noted that the circular also clarified that it would apply retrospectively to pending appeals, which, if below the specified tax limits, may be withdrawn or not pressed. Therefore, the appeal was dismissed on the basis of the tax effect being below the prescribed threshold for High Court appeals. No specific issue was decided on merits.

What were the facts?

This appeal was filed by the Revenue (Commissioner of Income Tax and Deputy Commissioner of Income Tax) against an order passed by the Income Tax Appellate Tribunal (ITAT), Bangalore in ITA No.1051/BANG/2011 dated November 2, 2012. The assessee is M/s Gerb Vibration Control Systems Pvt 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. The circular also clarified that it would apply retrospectively to pending appeals below the specified tax limits, which could be withdrawn or not pressed.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the revised monetary limits for filing appeals before the High Court as per CBDT Circular No. 21/2015? The Revenue contended that the tax effect in the present appeal is below the specified limit of Rs. 20 lacs, as per the aforementioned Circular No. 21/2015. The Revenue relied on the said Circular for its submission. The judgment does not record any specific arguments from the assessee's side regarding the maintainability of the appeal on this ground.

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. 121/2013

BETWEEN

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

THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-11(3), RASHTROTHANA BHAVAN, NRUPATHUNGA ROAD, BANGALORE -560 001.

...APPELLANTS

(BY SRI. K.V. ARAVIND & MS. PREETHI.J.D-ADVs)

AND

M/S GERB VIBRATION CONTROL SYSTEMS PVT LTD., NO.27/A, 2ND PHASE, PEENYA INDUSTRIAL AREA, BANGALORE-560 001.

... RESPONDENT

(BY SRI. BALARAM.R.RAO-ADV)

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.1051/BANG/2011 DATED: 2.11.2012, 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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