THE COMMISSINER OF INCOME TAX vs. M/S P.R.KULKARNI & SONS (HUF)

ITA/200/2010HC KarnatakaKAHC01041512201017 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 December 10, 2015, which enhanced the monetary limit for filing appeals before the High Court to Rs. 20 lacs and allowed for pending appeals below this limit to be withdrawn or not pressed, and considering the statement by the Revenue's counsel that the tax effect in the present appeal is below Rs. 20 lacs, the appeal stands dismissed. The reasoning is based solely on the application of the circular and the stated tax effect. The specific ITAT order or the merits of the case were not examined.

What were the facts?

The appeal was filed by the Revenue against an order of the Income Tax Appellate Tribunal (ITAT), Bangalore. The assessee is M/s P.R. Kulkarni & Sons (HUF). The Revenue's counsel presented 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. The circular also clarified that it would apply retrospectively to pending appeals, which could be withdrawn or not pressed if below the specified tax limits. The Revenue's counsel stated that the tax effect in the present appeal was below the enhanced limit of Rs. 20 lacs.

What were the issues?

1. Whether the appeal filed by the Revenue is to be dismissed in view of CBDT Circular No. 21/2015 enhancing the monetary limit for filing appeals before the High Court to Rs. 20 lacs, and the tax effect in the present appeal being below this limit? Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The Revenue contended that the tax effect in the present appeal is below the specified limit of Rs. 20 lacs, as per CBDT Circular No. 21/2015 dated December 10, 2015. This circular allows for pending appeals with a tax effect below the enhanced limit to be withdrawn or not pressed. The Revenue relied on Circular No. 21/2015.

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. 200/2010

BETWEEN:

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

THE ADDL. COMMISSIONER OF INCOME TAX, RANGE-1, MYSORE. …APPELLANTS

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

AND:

M/S P.R.KULKARNI & SONS (HUF), NO.34/1, 1ST MAIN ROAD, YADAVAGIRI CIRCLE, YADAVAGIRI, MYSORE. ... RESPONDENT

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

THIS ITA IS FILED UNDER SECTION 260A OF I.T. ACT 1961, PRAYING TO SET ASIDE THE ORDERS PASSED BY THE ITAT, BANGALORE IN ITA NO. 569/BANG/2009 DATED: 29.1.2010, 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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