THE COMMISSIONER OF INCOME TAX vs. M/S DYNAMATIC TECHNOLOGIES LTD

ITA/381/2012HC KarnatakaKAHC01048281201217 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court considered CBDT Circular No. 21/2015 dated December 10, 2015, which revised the monetary limit for filing appeals before the High Court to Rs. 20 lacs and made it applicable retrospectively to pending appeals. The Revenue's counsel confirmed that the tax effect in the present appeal was below the enhanced limit of Rs. 20 lacs. Consequently, following the circular, the High Court held that the appeal stands dismissed. The reasoning is based on the administrative instruction from the CBDT, which provides a threshold for the tax effect below which appeals are not to be pursued. No specific findings on the merits of the ITAT's order were made, as the dismissal was procedural based on the revised monetary limits.

What were the facts?

The 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. The assessee is M/s Dynamatic Technologies 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). 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clarified that it would apply retrospectively to pending appeals, allowing those below the specified tax limits to be withdrawn or not pressed.

What were the issues?

1. Whether the present appeal, filed by the Revenue, should be dismissed in light of CBDT Circular No. 21/2015, which enhances the monetary limit for filing appeals before the High Court to Rs. 20 lacs and applies retrospectively. Assessee's Contentions: The judgment does not record any specific contentions from the assessee's side. However, the appeal was dismissed based on the Revenue's submission regarding the circular. Revenue's Contentions: The Revenue's counsel submitted CBDT Circular No. 21/2015 dated December 10, 2015, which increased the monetary limit for filing appeals before the High Court from Rs. 10 lacs to Rs. 20 lacs. They further stated that the tax effect in the present appeal is below the specified limit of Rs. 20 lacs and, in view of the circular, the appeal may be withdrawn or not pressed.

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. 381/2012

BETWEEN

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

THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-11 (1), C.R.BUILDINGS, QUEENS ROAD, BANGALORE.

...APPELLANTS

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

AND

M/S DYNAMATIC TECHNOLOGIES LTD., NO.11, DYNAMITC PARK, PEENYA INDUSTRIAL AREA, BANGALORE-560 068.

... RESPONDENT

(BY SRI. S.SUKUMAR-ADV)

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.879/BANG/2010 DATED: 29.6.2012, 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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