THE COMMISSIONER OF INCOME TAX vs. M/S C K K CATERING SERVICES

ITA/5/2010HC KarnatakaKAHC01008280201017 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue 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 applies retrospectively to pending appeals. Since the Revenue's counsel stated that the tax effect in the present appeal is below the specified limit of Rs. 20 lacs, the appeal was dismissed. The reasoning is based on the administrative instruction from the CBDT regarding the threshold for pursuing appeals, which the Revenue itself invoked. The operative direction is the dismissal of the appeal.

What were the facts?

The 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, in IT(SS)A No.2/BANG/2007 dated 21.8.2009. The assessee is M/s C.K.K. Catering Services. The appeal was filed under Section 260A of the Income Tax Act, 1961. The Revenue's counsel presented a Circular No. 21/2015 dated 10.12.2015, 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. The Circular also clarified that it would apply retrospectively to pending appeals, allowing for withdrawal or non-pressing of appeals below the specified tax limits.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court in light of the revised monetary limits for filing appeals as per CBDT Circular No. 21/2015? (Question of law) Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The Revenue's counsel submitted that the tax effect in the present appeal is below the enhanced specified limit of Rs. 20 lacs. Relying on CBDT Circular No. 21/2015 dated 10.12.2015, which allows for withdrawal or non-pressing of pending appeals with a tax effect below the specified limits, the Revenue sought to dismiss the appeal.

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. 5/2010

BETWEEN

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

THE ASST.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 C.K.K.CATERING SERVICES, NO.2 PLATFORM, RAILWAY STATION, MANGALORE. ... RESPONDENT

(BY SMT.VANI.H-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 IT(SS)A NO.2/BANG/2007 DATED: 21.8.2009, 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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