THE COMMISSIONER OF INCOME TAX vs. M N MANJUNATH

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ITA/188/2010HC KarnatakaKAHC01036668201017 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that in view 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 to pending appeals, the present appeal, having a tax effect below Rs. 20 lacs, should be dismissed. The Court accepted the submission of the Revenue's counsel that the tax effect in this appeal was below the specified limit. Therefore, the appeal was dismissed based on the circular and the stated tax effect, without delving into the merits of the ITAT's order. No issue was expressly left undecided, as the appeal was disposed of on a procedural ground related to the monetary limit.

What were the facts?

The appeal was filed by the Revenue (Commissioner of Income Tax and Additional Commissioner of Income Tax) against an order passed by the Income Tax Appellate Tribunal (ITAT), Bangalore. The respondent is Shri M.N. Manjunath. The appeal was filed under Section 260-A 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). This circular enhanced the monetary limit for filing appeals before the High Court from Rs. 10 lacs to Rs. 20 lacs and stated it would apply retrospectively to pending appeals.

What were the issues?

1. Whether the appeal filed by the Revenue is to be dismissed in light of CBDT Circular No. 21/2015 enhancing the monetary limit for filing appeals to the High Court to Rs. 20 lacs, and if the tax effect in the present appeal is below this limit. Assessee's Contention: The judgment does not record any specific contentions from the assessee's side regarding the merits of the case. The assessee's counsel appeared but did not argue on the substantive issues. Revenue's Contention: The Revenue's counsel brought to the notice of the Court CBDT Circular No. 21/2015, which retrospectively allows for withdrawal or non-pressing of pending appeals where the tax effect is below the enhanced monetary limit of Rs. 20 lacs. The Revenue stated that the tax effect in the present appeal falls below this specified limit.

Which sections of the Income-tax Act were involved?

Section 260-A

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. 188/2010

BETWEEN

1.

THE COMMISSIONER OF INCOME TAX, NO.55/1, SHILPASHREE, VIDYARANYA COMPLEX, VISHVESHWARANAGAR, MYSORE.

2.

THE ADDL. COMMISSIONER OF INCOME TAX, RANGE-2, NO.55/1, SHILPASHREE, VIDYARANYA COMPLEX, VISHVESHWARANAGAR, MYSORE.

...APPELLANTS

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

AND

SHRI. M.N.MANJUNATH MANCHANAYAKANA HALLY POST, BIDADI HOBLI, HANUMANTHANAGAR, RAMANAGAR TALUK.

... RESPONDENT

(BY SRI. A. SHANKAR & SRI. M.LAVA-ADVs)

THIS ITA FILED U/S.260-A OF I.T.ACT, 1961,PRAYING TO SET ASIDE THE ORDERS PASSED BY THE ITAT BANGALORE IN ITA NO. 1464/BANG/2008, DATED 30.12.2009, 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.

2.

Learned counsel for the appellants has stated that the tax effect in the present appeal is below the specified limit of Rs.20 lacs.

3.

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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