THE COMMISSIONER OF INCOME TAX vs. SRI KALKI KODANDARAMI REDDY

ITA/277/2012HC KarnatakaKAHC01038296201217 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal is to be dismissed in view of Circular No. 21/2015 dated 10.12.2015 issued by the Central Board of Direct Taxes. The Circular enhanced the monetary limit for filing appeals before the High Court to Rs. 20 lacs and clarified that it applies retrospectively to pending appeals. The Revenue's counsel stated that the tax effect in the present appeal was below the specified limit of Rs. 20 lacs. Consequently, the appeal was dismissed on this administrative ground, without delving into the merits of the original dispute decided by the ITAT. No issue was left undecided; the appeal was disposed of based on the circular.

What were the facts?

This is an appeal filed by the Revenue (Commissioner of Income Tax and Income-Tax Officer) 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 is Sri. Kalki Kodarami Reddy. The specific assessment year(s) and the amount in dispute are not explicitly stated in the provided text. The procedural history involves the Revenue filing this appeal before the High Court of Karnataka after an adverse order from the ITAT.

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 CBDT? (Question of law, turning on Section 260A of the Income Tax Act, 1961). Contentions: Assessee: Not recorded. Revenue: Relied on Circular No. 21/2015 dated 10.12.2015, which enhanced the monetary limit for filing appeals before the High Court from Rs. 10 lacs to Rs. 20 lacs and stated that this circular applies retrospectively to pending appeals. The Revenue contended 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. 277/2012

BETWEEN

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

THE INCOME-TAX OFFICER, WARD-11(1), C.R.BUILDING, QUEENS ROAD, BANGALORE.

...APPELLANTS

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

AND

SRI. KALKI KODANDARAMI REDDY NO. 547, 3RD BLOCK, 2ND STAGE, 1ST MAIN, RMV EXTENSION, BANGALORE-560010.

... RESPONDENT

(BY SRI. A. SHANKAR & SRI. M.LAVA-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 ITA NO.446/BANG/2011 DATED:09.03.2012, 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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