THE COMMISSIONER OF INCOME TAX vs. M/S INATECH INFO SOLUTIONS PVT LTD

ITA/175/2012HC KarnatakaKAHC01020653201217 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court considered CBDT Circular No. 21/2015 dated December 10, 2015, which increased the monetary threshold 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. The Revenue's counsel submitted that the tax effect in the present appeal was below the enhanced limit of Rs. 20 lacs. Consequently, following the circular, the High Court held that the appeal stands dismissed. The operative direction is the dismissal of the appeal. No specific issue was left undecided.

What were the facts?

This is an appeal filed by the Revenue (Commissioner of Income Tax and Deputy Commissioner of Income Tax) against an order of the Income Tax Appellate Tribunal (ITAT) in ITA No. 592/Bang/2011, dated February 16, 2012. The assessee is M/s Inatech Info Solutions Pvt. Ltd. The appeal is 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circular was clarified to apply retrospectively to pending appeals below the specified tax limits, allowing them to be withdrawn or not pressed.

What were the issues?

1. Whether the present appeal, filed by the Revenue, should be dismissed in light of CBDT Circular No. 21/2015, which enhances the monetary limit for filing appeals before the High Court to Rs. 20 lacs and applies retrospectively. The Revenue's contention is that the tax effect in the present appeal is below the specified limit of Rs. 20 lacs. Therefore, in view of the aforementioned Circular, the appeal may be withdrawn or not pressed. The judgment does not record any specific arguments from the assessee's side regarding the merits of the case or the applicability of the circular.

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. 175/2012

BETWEEN

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

THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-11(4) C.R.BUILDING, QUEENS ROAD, BANGALORE.

...APPELLANTS

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

AND

M/S INATECH INFO SOLUTIONS PVT. LTD., NO. 22, CUNNINGHAM CLASSIC, CUNNINGHAM ROAD, BANGALORE – 560 052. BANGALORE – 560 005.

... RESPONDENT

(BY SRI. TATA KRISHNA-ADV)

THIS ITA IS FILED UNDER SECTION 260A OF INCOME TAX ACT, 1961, PRAYING TO SET ASIDE THE ORDER OF THE TRIBUNAL IN ITA NO.592/BANG/2011 DATED: 16.2.2012, 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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