THE COMMISSIONER OF INCOME-TAX vs. M/S SANGAM ENTERPRISES

ITA/212/2011HC KarnatakaKAHC01053045201117 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue should be dismissed in view of CBDT Circular No. 21/2015 dated 10.12.2015. 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. The Revenue's counsel stated that the tax effect in the present appeal was below the revised limit of Rs. 20 lacs. Consequently, following the circular, the Court dismissed the appeal. No specific findings were made on the merits of the ITAT's order. The operative direction was to dismiss the appeal.

What were the facts?

The Revenue, comprising the Commissioner of Income Tax and the Assistant Commissioner of Income Tax, filed an appeal before the High Court of Karnataka against an order passed by the Income Tax Appellate Tribunal (ITAT), Bangalore. The appeal was filed under Section 260A of the Income Tax Act, 1961. The respondent in this appeal is M/s Sangam Enterprises. The procedural history leading to this appeal involves an order from the ITAT, Bangalore in IT(SS)A No. 62/BANG/2008, dated February 23, 2011, which is the subject of challenge. The specific amount in dispute is not explicitly stated but is referred to in terms of its 'tax effect'.

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 Circular No. 21/2015 issued by the Central Board of Direct Taxes (CBDT)? (Question of law and fact, turning on the interpretation and applicability of the CBDT Circular). Contentions: Assessee: No specific contentions are recorded in the judgment for the assessee. Revenue: The Revenue contended that the tax effect in the present appeal is below the specified limit of Rs. 20 lacs, as enhanced by CBDT Circular No. 21/2015 dated 10.12.2015. They relied on this circular, which allows for pending appeals below the specified tax limits to be withdrawn or not pressed.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 No. 212/2011

BETWEEN

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

THE ASST. 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 SANGAM ENTERPRISES, 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.62/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

Recent GST High Court judgments

Search GST case law →