THE COMMISSIONER OF INCOME-TAX vs. M/S ASK BROTHERS LTD

ITA/306/2012HC KarnatakaKAHC01039535201217 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court, in view of Circular No. 21/2015 dated December 10, 2015, which enhanced the monetary limit for filing appeals before the High Court to Rs. 20 lacs and was clarified to apply retrospectively to pending appeals, held that the tax effect in the present appeal was below the specified limit. Accordingly, the appeal was dismissed. The reasoning is based solely on the application of the CBDT circular and the stated tax effect being below the threshold. No specific findings on the merits of the original ITAT order were made.

What were the facts?

This appeal was filed by the Revenue (Commissioner of Income-tax and Deputy Commissioner of Income-tax) against an order passed by the Income Tax Appellate Tribunal (ITAT), Bangalore in IT(SS)A No.25/BANG/2004 dated April 4, 2012. The respondent is M/s ASK Brothers Ltd. The appeal was filed under Section 260A of the Income Tax Act, 1961. The Revenue's counsel presented 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. This circular was clarified to apply retrospectively to pending appeals.

What were the issues?

1. Whether the present appeal, filed by the Revenue, should be dismissed in light of the revised monetary limit for filing appeals before the High Court as per CBDT Circular No. 21/2015. The Revenue's contention was that the tax effect in the present appeal is below the specified limit of Rs. 20 lacs. Consequently, in view of the retrospective application of Circular No. 21/2015, the appeal may be withdrawn or not pressed. The judgment does not record any specific arguments from the respondent.

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. 306/2012

BETWEEN

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

THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-II, C.R.BUILDING, QUEENS ROAD, BANGALORE.

...APPELLANTS

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

AND

M/S ASK BROTHERS LTD., NO.1/1, PALACE ROAD, BANGALORE.

... 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 IT(SS)A NO.25/BANG/2004 DATED: 4.4.2012, 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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