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

ITA/122/2013HC KarnatakaKAHC01015241201317 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue is to be dismissed in view of CBDT Circular No. 21/2015 dated December 10, 2015. The circular enhanced the monetary limit for filing appeals before the High Court to Rs. 20 lacs and clarified its retrospective application to pending appeals. Since the tax effect in the present appeal was stated by the Revenue's counsel to be below Rs. 20 lacs, the appeal was dismissed accordingly. The reasoning is based on the administrative instruction from the CBDT to streamline litigation and reduce the burden of appeals with low tax effect. No specific issue was decided on merits; the appeal was disposed of based on the circular.

What were the facts?

The 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. 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 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also clarified that it would apply retrospectively to pending appeals below the specified tax limits, which could be withdrawn or not pressed.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 before the High Court given the revised monetary limits for appeals as per CBDT Circular No. 21/2015? (Question of law) The Revenue argued that the tax effect in the present appeal is below the enhanced specified limit of Rs. 20 lacs. Therefore, in view of the retrospective applicability of Circular No. 21/2015, the appeal should be dismissed or not pressed. The judgment does not record any arguments from the assessee's side on this specific point.

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. 122/2013

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, BENGALURU-560 058.

... 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.1052/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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