THE COMMISSIONER OF INCOME TAX vs. SRI KALKI KODANDARAMI REDDY

ITA/284/2012HC KarnatakaKAHC01033452201217 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal should be dismissed in view of CBDT Circular No. 21/2015. The Revenue's counsel submitted that the tax effect in the present appeal was below the specified limit of Rs. 20 lacs. The Court noted that the Circular, dated December 10, 2015, enhanced the monetary limit for filing appeals before the High Court from Rs. 10 lacs to Rs. 20 lacs and applied retrospectively to pending appeals. Consequently, as the tax effect in this appeal was less than Rs. 20 lacs, the appeal was dismissed. The operative direction was the dismissal of the appeal. No issues were expressly left undecided.

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 appeal challenges the ITAT's order in ITA No.449/BANG/2011 dated March 9, 2012. The Revenue's counsel submitted a Circular No. 21/2015 dated December 10, 2015, issued by the Central Board of Direct Taxes, which 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also clarified that it would apply retrospectively to pending appeals below the specified tax limits, which could be withdrawn or not pressed.

What were the issues?

1. Whether the present appeal, filed by the Revenue, should be dismissed on the grounds of low tax effect, in light of the Central Board of Direct Taxes (CBDT) Circular No. 21/2015. The Revenue's contention is that the tax effect in the present appeal is below the enhanced monetary limit of Rs. 20 lacs stipulated in CBDT Circular No. 21/2015. Therefore, in accordance with the Circular, the appeal should be dismissed or not pressed. The judgment does not record any specific arguments from the assessee's side regarding the merits of the case or the applicability of the circular.

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. 284/2012

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.449/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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