THE COMMISSIONER OF INCOME TAX vs. SHRI H IBRAHIM

ITA/152/2012HC KarnatakaKAHC01025659201217 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 was to be dismissed. This decision was based on the presentation of CBDT Circular No. 21/2015 dated December 10, 2015. The circular stipulated an enhanced monetary limit of Rs. 20 lacs for filing appeals before the High Court and clarified its retrospective application to pending appeals. The Revenue's counsel submitted that the tax effect in the present appeal was below this Rs. 20 lacs limit. Consequently, the Court found the appeal to be below the specified limit and, in view of the circular, directed that the appeal stands dismissed. The ratio decidendi is that appeals not meeting the revised monetary threshold stipulated by CBDT circulars, especially those applicable retrospectively, are liable to be dismissed without a decision on the merits of the original dispute.

What were the facts?

This appeal was filed by the Revenue (The Commissioner of Income Tax and The Deputy Commissioner of Income Tax) against an order passed by the Income Tax Appellate Tribunal (ITAT), Bangalore in ITA No.1039/BANG/2010 dated January 31, 2012. The assessee is Shri H. Ibrahim, an Excise Contractor. 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also clarified that it would apply retrospectively to pending appeals below the specified tax limits, which could be withdrawn or not pressed.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 before the High Court in light of the revised monetary limit for appeals as per CBDT Circular No. 21/2015? (Question of law) The Revenue's contention was that their counsel presented CBDT Circular No. 21/2015, which increased the monetary threshold for filing appeals to the High Court to Rs. 20 lacs. They stated that the tax effect in the present appeal was below this enhanced limit. The Revenue argued that, in accordance with this circular, the appeal should be dismissed as it did not meet the revised threshold. The judgment does not record any arguments from the Respondent (assessee) 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. 152/2012

BETWEEN

THE COMMISSIONER OF INCOME TAX PARK VIEW BUILDING, NO. 284/1, 4TH MAIN, P.J.EXTENSION, DAVANAGERE.

THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1, SHIMOGA.

..APPELLANTS

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

AND

SHRI. H. IBRAHIM EXCISE CONTRACTOR, KOTE POST OFFICE ROAD, SHIMOGA.

... RESPONDENT

(BY SRIYUTHS. A. SHANKAR & M.LAVA-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.1039/BANG/2010 DATED: 31.1.2012, 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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