THE COMMISSIONER OF INCOME TAX vs. VIJAYA BANK

ITA/14/2012HC KarnatakaKAHC01008839201217 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court decided to dismiss the appeal based on Circular No. 21/2015 issued by the CBDT. The Court noted that the circular, dated December 10, 2015, increased the monetary limit for filing appeals before the High Court to Rs. 20 lacs and clarified that it would apply retrospectively to pending appeals. Since the counsel for the appellants (Revenue) stated that the tax effect in the present appeal was below Rs. 20 lacs, the High Court, in view of the circular, dismissed the appeal. The specific tax effect amount and the original ITAT's decision on merits were not discussed or decided by the High Court.

What were the facts?

The appeal was filed by the Revenue (Commissioner of Income Tax and Joint Commissioner of Income Tax) against an order passed by the Income Tax Appellate Tribunal (ITAT), Bangalore. The assessee is Vijaya Bank. The appeal was filed under Section 260A of the Income Tax Act, 1961. The ITAT's order under challenge was dated August 26, 2011, in ITA No. 1066/Bang/2010. The High Court was hearing the appeal on December 17, 2015.

What were the issues?

The primary issue before the High Court was whether the appeal filed by the Revenue should be entertained given a new circular issued by the Central Board of Direct Taxes (CBDT). The Revenue argued that Circular No. 21/2015, dated December 10, 2015, enhanced the monetary limit for filing appeals before the High Court from Rs. 10 lacs to Rs. 20 lacs. The Revenue contended that this circular applies retrospectively to pending appeals and allows for withdrawal or non-pressing of appeals below the specified tax limits. The Revenue stated that the tax effect in the present appeal is below the enhanced limit of Rs. 20 lacs. The judgment does not record any 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. 14/2012

BETWEEN

THE COMMISSIONER OF INCOME TAX LTU, JSS TOWERS, BSK III STAGE, BANGALORE.

THE JOINT COMMISSIONER OF INCOME TAX, LTU, JSS TOWERS, BSK III STAGE, BANGALORE.

...APPELLANTS

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

AND

VIJAYA BANK, HEAD OFFICE, CENTRAL ACCOUNTS DEPARTMENT, 41/2, M.G.RAOD, BANGALORE-560 001.

.. RESPONDENT

(BY SRI. RAMABADRAN-ADV)

THIS ITA IS FILED UNDER SECTION 260A OF INCOME TAX ACT, 1961, PRAYING TO SET ASIDE THE DATED: 26.8.2011 PASSED BY THE ITAT, BANGALORE IN ITA NO. 1066/BANG/2010, 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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