THE COMMISSIONER OF INCOME TAX vs. M/S. KHODAY INDIA LTD.,

ITA/399/2012HC KarnatakaKAHC01047731201217 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 December 10, 2015, which enhances the monetary limit for filing appeals before the High Court to Rs. 20 lacs and applies retrospectively to pending appeals, and considering that the tax effect in the present appeal is below this limit, the appeal stands dismissed. The reasoning is based solely on the application of the circular and the stated tax effect. No other issue was decided on merits. The operative direction is the dismissal of the appeal.

What were the facts?

This appeal was 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 assessee is M/s Khoday India Ltd. The appeal was filed under Section 260A of the Income Tax Act, 1961. The Revenue's counsel submitted 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 and clarified that it would apply retrospectively to pending appeals. The Revenue's counsel stated that the tax effect in the present appeal was below the specified limit of Rs. 20 lacs.

What were the issues?

1. Whether the appeal filed by the Revenue is to 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 the tax effect in the present appeal being below this limit. Contentions: Assessee: No specific contentions recorded in the judgment. Revenue: The Revenue contended that the tax effect in the present appeal is below the specified limit of Rs. 20 lacs, and therefore, in view of CBDT Circular No. 21/2015, the appeal should be dismissed. The Revenue relied on Circular No. 21/2015 dated 10.12.2015.

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. 399/2012

BETWEEN

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

THE ASST. COMMISSISONER 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 KHODAY INDIA LTD., BREWERY HOUSE, 7TH MILE, KANAKAPURA ROAD, BANGALORE-560 002.

... 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.211/BANG/2012 DATED: 18.07.2012, 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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