THE COMMISSIONER OF INCOME TAX vs. SRI KALKI KODANDARAMI REDDY

ITA/282/2012HC KarnatakaKAHC01038298201217 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal stands dismissed. This decision was based on the submission by the Revenue's counsel that the tax effect in the present appeal was below the revised monetary limit of Rs. 20 lacs, as stipulated in CBDT Circular No. 21/2015 dated 10.12.2015. The circular, which was brought to the court's notice, allows for pending appeals with a tax effect below the specified limit to be withdrawn or not pressed. The court accepted this submission and proceeded to dismiss the appeal accordingly. No other issues were decided on merits.

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 assessee is Sri. Kalki Kodandarami Reddy. The Revenue's counsel brought to the court's attention 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. The circular also clarified that it would apply retrospectively to pending appeals, which could be withdrawn or not pressed if below the specified tax limits.

What were the issues?

1. Whether the present appeal, filed by the Revenue, is maintainable before the High Court given the revised monetary limits for appeals as per CBDT Circular No. 21/2015? (Question of law and fact, turning on Section 260A of the Income Tax Act, 1961 and the applicability of the CBDT Circular). Contentions: Assessee: No specific contentions recorded in the judgment. Revenue: The Revenue's counsel submitted that the tax effect in the present appeal is below the specified revised limit of Rs. 20 lacs. They relied on CBDT Circular No. 21/2015 dated 10.12.2015, which allows for the withdrawal or non-pressing of pending appeals if their tax effect is below the enhanced monetary limit.

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. 282/2012

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-560 010. ... 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 ORDER PASSED BY THE ITAT, BANGALORE IN ITA NO.447/BANG/2011 DATED: 9.3.2012, 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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