THE COMMISSIONER OF INCOME TAX vs. M/S HML AGENCIES PVT LTD

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ITA/49/2011HC KarnatakaKAHC01021129201117 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal is to be dismissed in view of CBDT Circular No. 21/2015 dated 10.12.2015. The circular enhanced the monetary limit for filing appeals before the High Court 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. Consequently, the High Court, following the circular, dismissed the appeal. The operative direction was the dismissal of the appeal. No issues were expressly left undecided.

What were the facts?

The appellants, the Commissioner of Income Tax and the Assistant Commissioner of Income Tax, Central Circle, Mangalore, filed an appeal before the High Court of Karnataka. The appeal was against an order passed by the Income Tax Appellate Tribunal (ITAT), Bangalore, in ITA No. 1209/BANG/2009 and MP No. 103/BANG/2010. The respondent is M/s HML Agencies Pvt. Ltd. The appeal was filed under Section 260-A 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 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 contended that the tax effect in the present appeal is below the enhanced specified limit of Rs. 20 lacs. Therefore, in view of the retrospective application of Circular No. 21/2015, the appeal should be dismissed or not pressed. The Revenue relied on Circular No. 21/2015 dated 10.12.2015. The judgment does not record any specific arguments from the respondent.

Which sections of the Income-tax Act were involved?

Section 260-A

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. 49/2011

BETWEEN

1.

THE COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, C.R.BUILDING, ATTAVARA, MANGALORE.

2.

THE ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE, C.R.BUILDING, ATTAVARA, MANGALORE.

...APPELLANTS

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

AND

M/S HML AGENCIES PVT. LTD., NO.201, VEEKAY TOWERS, KULUR BANGRA ROAD, KULUR, MANGALORE.

... RESPONDENT

(BY SRI. A. SHANKAR & SRI. M.LAVA-ADVs)

THIS ITA IS FILED U/S 260-A OF I.T. ACT, 1961, PRAYING TO SET ASIDE THE ORDERS PASSED BY THE ITAT, BANGALORE IN ITA NO. 1209/BANG/2009, DATED 30.6.2010 AND IN MP NO. 103/BANG/2010 DATED: 07.01.2011, 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.

2.

Learned counsel for the appellants has stated that the tax effect in the present appeal is below the specified limit of Rs.20 lacs.

3.

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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