THE COMMISSIONER OF INCOME TAX vs. SRI B C NANJUNDA SETTY

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ITA/246/2010HC KarnatakaKAHC01051157201017 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Karnataka, in light of CBDT Circular No. 21/2015 dated December 10, 2015, held that the appeal filed by the Revenue should be dismissed. The circular clarified that the enhanced monetary limit for filing appeals before the High Court from Rs. 10 lacs to Rs. 20 lacs would apply retrospectively to pending appeals. The Revenue's counsel confirmed that the tax effect in the present appeal was below the specified limit of Rs. 20 lacs. Therefore, following the circular, the appeal was dismissed. No specific findings were made on the merits of the original ITAT order, as the dismissal was based on the procedural aspect of the revised monetary limits for appeals.

What were the facts?

The appellants, the Commissioner of Income Tax and the Additional Commissioner of Income Tax, filed an appeal under Section 260-A of the Income Tax Act, 1961, before the High Court of Karnataka. The appeal challenged an order passed by the Income Tax Appellate Tribunal (ITAT), Bangalore, in ITA No. 737/Bang/2009, dated February 26, 2010. The respondent is Sri B.C. Nanjunda Setty, proprietor of M/s. S.G.K. Industries. The appeal was filed seeking to set aside the ITAT's order. The High Court was presented with a Circular No. 21/2015, dated December 10, 2015, issued by the Central Board of Direct Taxes (CBDT), which enhanced the monetary limit for filing appeals before the High Court from Rs. 10 lacs to 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 before the High Court as per CBDT Circular No. 21/2015? (Question of law) The Revenue, through its learned counsel, submitted that the tax effect in the present appeal is below the enhanced specified limit of Rs. 20 lacs. Consequently, in view of the CBDT Circular No. 21/2015, which allows for withdrawal or non-pressing of pending appeals with a tax effect below the specified limits, the appeal should be dismissed. The Revenue relied on Circular No. 21/2015. The judgment does not record any specific arguments from the Respondent.

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. 246/2010

BETWEEN

1.

THE COMMISSIONER OF INCOME TAX PARK VIEW BUILDING NO.284/1, 4TH MAIN P J EXTENSION, DAVANAGERE 577002

2.

THE ADDL. COMMISSIONER OF INCOME TAX SHIMOGA RANGE, SHIMOGA. ... APPELLANTS

(By Sri. K V ARAVIND & Ms. PREETHI J.D. ADVs., )

AND

SRI B C NANJUNDA SETTY M/S. S G K INDUSTRIES INDUSTRIAL ESTATE, SAGAR ROAD, SHIMOGA ... RESPONDENT

(By Sriyuths A SHANKAR & M LAVA, ADVs.,)

ITA is filed u/S.260-A of I.T.Act, 1961 praying to set aside the order passed by the ITAT, Bangalore, in ITA No.737/Bang/2009 dated 26/02/2010, etc.

THIS ITA COMING ON FOR FINAL DISPOSAL 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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