COMMISSIONER OF INCOME TAX vs. M/S MANIPAL TECHNOLOGIES LTD

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ITA/539/2014HC KarnatakaKAHC01042370201417 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court, in view of CBDT Circular No. 21/2015 dated December 10, 2015, which enhanced the monetary limit for filing appeals before the High Court to Rs. 20 lacs and applied retrospectively to pending appeals, held that the tax effect in the present appeal was below this specified limit. Consequently, the appeal was dismissed. The reasoning was based on the Revenue's submission that the tax effect was below the threshold and the directive within the circular to withdraw or not press such appeals. No specific issue regarding the merits of the ITAT's order was decided. The operative direction was the dismissal of the appeal.

What were the facts?

The Revenue, comprising the Commissioner of Income Tax and the Deputy Commissioner of Income Tax, filed an appeal under Section 260-A of the Income Tax Act, 1961, against the common appellate order dated July 18, 2014, passed by the Income Tax Appellate Tribunal (ITAT), Bangalore Bench. The appeal was filed against M/s Manipal Technologies Ltd. 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 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 enhanced limit of Rs. 20 lacs.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court given the revised monetary limits for filing appeals as per CBDT Circular No. 21/2015. Assessee's Contention: Not recorded. Revenue's Contention: The Revenue argued that the tax effect in the present appeal is below the revised monetary limit of Rs. 20 lacs, as stipulated in CBDT Circular No. 21/2015. They relied on the said circular, which allows for withdrawal or non-pressing of pending appeals if the tax effect is below the specified limits.

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. 539/2014

BETWEEN

1.

COMMISSIONER OF INCOME TAX MANGALORE.

2.

THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1, UDUPI-576103. ... APPELLANTS

(By Sri. E I SANMATHI, ADV.,)

AND

M/S MANIPAL TECHNOLOGIES LTD (FORMERLY KNOWN AS MANIPAL PRESS LTD) UDAYAVANI BUILDING, MANIPAL-576104. PAN:AABCM 9516 H ... RESPONDENT

(By Sri. S.PARTHASARATHI & Ms. JINITA CHATTERJEE, ADVs. )

This Income Tax Appeal is filed Under Sec.260-A of Income Tax Act 1961, praying to set aside the common appellate order dated 18.7.2014 passed by the ITAT ‘C’ Bench, Bangalore, in appeal proceedings No.ITA No.890/Bang/2013, etc.

THIS APPEAL COMING ON FOR ADMISSION 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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