THE COMMISSIONER OF INCOME-TAX vs. M/S HEWLETT PACKARD INDIA SALES PVT., LTD.,

ITA/196/2012HC KarnatakaKAHC01030828201217 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 dated 10.12.2015, which enhanced the monetary limit for filing appeals before the High Court to Rs. 20 lacs and clarified its retrospective application to pending appeals, the present appeal, having a tax effect below Rs. 20 lacs, stands dismissed. The court did not decide on the merits of the original dispute that led to the ITAT's order. The ratio of this decision is that appeals filed by the Revenue before the High Court, which do not meet the revised monetary threshold stipulated by a subsequent CBDT circular, will be dismissed without prejudice to the merits of the case.

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. 589/Bang/2011, dated February 27, 2012. The respondent is M/s Hewlett Packard India Sales Pvt. Ltd. The appeal was filed under Section 260A of the Income Tax Act, 1961. The Revenue sought to set aside the ITAT's order. The appeal was heard by the High Court of Karnataka.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the revised monetary limits for filing appeals before the High Court as per CBDT Circular No. 21/2015. The Revenue argued that a recent Circular No. 21/2015 dated 10.12.2015, issued by the Central Board of Direct Taxes (CBDT), enhanced the monetary limit for filing appeals before the High Court from Rs. 10 lacs to Rs. 20 lacs. The Revenue further contended that paragraph 10 of this circular clarifies that it applies retrospectively to pending appeals, and those below the specified tax limits may be withdrawn or not pressed. The Revenue stated that the tax effect in the present appeal is below the specified limit of Rs. 20 lacs.

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. 196/2012

BETWEEN

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

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

...APPELLANTS

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

AND

M/S HEWLETT PACKARD INDIA SALES PVT., LTD., NO. 24, SALARPURIA ARENA, HOSUR MAIN ROAD, ADUGODI, BANGALORE-560030.

.. RESPONDENT

(BY SRI. T.SURYANARAYANA-ADV., FOR KING & PARTRIDGE)

THIS ITA IS FILED UNDER SECTION 260A OF INCOME TAX ACT, 1961, PRAYING TO SET ASIDE THE OF THE TRIBUNAL IN ITA NO.589/BANG/2011 DATED: 27.2.2012, 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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