THE COMMISSIONER OF INCOME TAX vs. M/S MALPANI P C & CO,

ITA/210/2011HC KarnatakaKAHC01056771201117 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court, in view of CBDT Circular No. 21/2015 dated 10.12.2015, held that the tax effect in the present appeal was less than Rs. 20 lacs. Consequently, the appeal stands dismissed. The reasoning is based on the retrospective application of the circular, which allows for the withdrawal or non-pressing of pending appeals where the tax effect falls below the enhanced monetary limit. The ratio decidendi is that appeals filed by the Revenue that do not meet the revised monetary threshold specified in the CBDT circular are to be dismissed. No specific issue was left undecided.

What were the facts?

The appeal was filed by the Revenue (Commissioner of Income Tax and Deputy Commissioner of Income Tax) against an order passed by the Income Tax Appellate Tribunal (ITAT), Bangalore. The assessee is M/s P.C. Malpani & Co. The appeal is under Section 260A of the Income Tax Act, 1961. The Revenue placed before the High Court a Circular No. 21/2015 dated 10.12.2015 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lacs and clarified that it would apply retrospectively to pending appeals below the specified tax limits, which may be withdrawn or not pressed. The Revenue's counsel stated that the tax effect in the present appeal was below the specified limit of Rs. 20 lacs.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the revised monetary limits for filing appeals as per CBDT Circular No. 21/2015, dated 10.12.2015? (Question of law) Assessee's Contention: Not recorded. Revenue's Contention: The tax effect in the present appeal is below the enhanced monetary limit of Rs. 20 lacs, as per CBDT Circular No. 21/2015. Therefore, the appeal may be withdrawn or not pressed.

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 210/2011

BETWEEN

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

THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1), C.R.BUILDING, QUEENS ROAD, BANGALORE. …APPELLANTS

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

AND

M/S P.C.MALPANI & CO, NO. 14/1, J.C.ROAD, BANGALORE. ... RESPONDENT

(BY SRI.S.PARTHASARATHI & MS.JINITA CHATTERJEE–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 IT(SS)A NO.64/BANG/2008 DATED: 23.2.2011, 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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