THE COMMISSIONER OF INCOME TAX vs. SHRI. FAHEEM SHAH

ITA/335/2013HC KarnatakaKAHC01029060201317 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that in view of CBDT Circular No. 21/2015 dated 10.12.2015, which enhanced the monetary limit for filing appeals before the High Court to Rs. 20 lacs and applied retrospectively, the present appeal, having a tax effect below Rs. 20 lacs, should be dismissed. The reasoning is directly based on the Revenue's submission that the tax effect falls below the revised threshold and the explicit instruction within the circular for such pending appeals to be withdrawn or not pressed. The operative direction is that the appeal stands dismissed. No issues were expressly left undecided.

What were the facts?

This case involves an appeal filed by the Revenue (Commissioner of Income Tax and Income-Tax Officer) against an order of the Income Tax Appellate Tribunal (ITAT), Bangalore. The appeal was filed under Section 260A of the Income Tax Act, 1961. The respondent is Shri Faheem Shah, proprietor of Classic Dairy Farm. The procedural history relevant to the appeal's disposal is the issuance of Circular No. 21/2015 by the Central Board of Direct Taxes (CBDT) on December 10, 2015. This circular enhanced the monetary limit for filing appeals before the High Court from Rs. 10 lacs to Rs. 20 lacs and clarified that it would apply retrospectively to pending appeals. The Revenue stated that the tax effect in the present appeal was below the new specified limit.

What were the issues?

1. Whether the appeal filed by the Revenue should be dismissed in light of CBDT Circular No. 21/2015, which enhanced the monetary limit for filing appeals before the High Court to Rs. 20 lacs, and if the tax effect in the present appeal is below this limit. The Revenue argued that a recent Circular No. 21/2015 dated 10.12.2015, issued by the CBDT, has enhanced the monetary limit for filing appeals before the High Court from Rs. 10 lacs to Rs. 20 lacs. It was further clarified in paragraph 10 of the circular that this would apply retrospectively to pending appeals, which, if below the specified tax limits, may be withdrawn or not pressed. The Revenue's counsel stated 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 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. 335/2013

BETWEEN

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

THE INCOME-TAX OFFICER, WARD-1(2), NO.59 HMT BHAVAN , 6TH FLOOR, BELLARY ROAD, GANGANAGAR, BANGALORE-560 032.

...APPELLANTS

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

AND

SHRI. FAHEEM SHAH PROP: CLASSIC DAIRY FARM, NO 98, DISPENSARY ROAD, BANGALORE.

... RESPONDENT

(BY SRI. S.PARTHASARATHI & MS. JINITA CHATTERJEE-ADVs)

THIS ITA IS FILED UNDER SECTION 260A OF INCOME TAX ACT, 1961, PRAYING TO SET ASIDE THE ORDER OF THE ITAT, BANGALORE IN ITA NO.502/BANG/2012 DATED: 8.2.2013, 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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