THE COMMISSIONER OF INCOME-TAX vs. M/S K R S ENTERPRISES P LTD

ITA/301/2012HC KarnatakaKAHC01050644201217 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court of Karnataka, in consideration of CBDT Circular No. 21/2015 dated 10.12.2015, held that the appeal filed by the Revenue was to be dismissed. The circular, which retrospectively enhanced the monetary limit for filing appeals before the High Court to Rs. 20 lacs, was the basis for the decision. The Revenue's counsel confirmed that the tax effect in the present appeal was below this enhanced limit. Consequently, the Tribunal found no reason to proceed with the appeal on its merits. The operative direction was to dismiss the appeal. No issues were expressly left undecided, as the appeal was disposed of on a procedural ground.

What were the facts?

This case involves an appeal filed by the Revenue (Commissioner of Income-Tax and Assistant Commissioner of Income-Tax) 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 M/s K.R.S. Enterprises P. Ltd. The specific assessment year(s) and the amount in dispute are not explicitly stated in the provided text. The procedural history relevant here is that the Revenue sought to challenge the ITAT's order before the High Court of Karnataka.

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. The Revenue's contention, as presented by its counsel, is that a recent Circular No. 21/2015 dated 10.12.2015 issued by the Central Board of Direct Taxes (CBDT) has enhanced the monetary limit for filing appeals before the High Court from Rs. 10 lacs to Rs. 20 lacs. The Revenue further stated that this circular applies retrospectively to pending appeals and that the tax effect in the present appeal is below the specified limit of Rs. 20 lacs. The judgment does not record any specific arguments from the assessee's side regarding the merits of the original appeal, as the appeal was disposed of based on 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. 301/2012

BETWEEN

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

THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-11(5), C.R.BUILDING, QUEENS ROAD, BANGALORE.

...APPELLANTS

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

AND

M/S K.R.S. ENTERPRISES P. LTD., NO.337/1A, 18TH CROSS, UPPER PALACE ORCHARDS, SADASHIVNAGAR, BANGALORE-560 080.

... RESPONDENT

(BY SRIYUTHS. A.SHANKAR & 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.1047/BANG/2009 DATED: 20.4.2012, 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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