PRINCIPAL COMMISSIONER OF INCOME TAX - 4 vs. M/S KUMAR ORGANIC PRODUCTS LTD

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ITA/60/2021HC KarnatakaKAHC01055912201905 August 2021Bench: SATISH CHANDRA SHARMA,SACHIN SHANKAR MAGADUM2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue is not maintainable. The court referred to a Circular dated August 8, 2019, which likely sets monetary limits for filing appeals. As the tax liability in dispute was Rs. 76,97,350/-, which presumably falls below the threshold stipulated in the circular, the appeal was deemed not maintainable. Consequently, the High Court dismissed the appeal. However, the court granted liberty to the Revenue to prefer a fresh appeal in the future should the need arise, implying that the dismissal is on procedural grounds rather than on merits.

What were the facts?

This case involves an appeal filed by the Principal Commissioner of Income Tax and the Deputy Commissioner of Income Tax (the Revenue) against an order dated July 19, 2019, passed by the Income Tax Appellate Tribunal (ITAT), Bengaluru Bench. The appeal pertains to the assessment year 2014-2015 and concerns M/s Kumar Organic Products Ltd. (the Assessee). The Revenue is challenging the ITAT's decision. The present appeal is filed under Section 260-A of the Income Tax Act, 1961. The High Court is considering the maintainability of the appeal.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, considering the tax liability in dispute and the relevant circulars issued by the Central Board of Direct Taxes (CBDT). Assessee's Contention: The judgment does not record any specific contentions made by the Assessee. The focus is on the Revenue's appeal and the court's decision regarding its maintainability. Revenue's Contention: The Revenue has filed the appeal under Section 260-A of the Income Tax Act, 1961, challenging the ITAT's order. The primary issue before the High Court is whether the appeal meets the threshold for maintainability, particularly in light of the tax effect.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5TH DAY OF AUGUST, 2021 PRESENT THE HON'BLE MR. JUSTICE SATISH CHANDRA SHARMA AND THE HON’BLE MR. JUSTICE SACHIN SHANKAR MAGADUM I.T.A NO.60 OF 2021 BETWEEN: 1. PRINCIPAL COMMISSIONER OF INCOME TAX - 4 BMTC COMPLEX, KORAMANGALA, BENGALURU. 2. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-4(1)(1), BMTC COMPLEX, KORAMANGALA, BENGALURU. ...APPELLANTS (BY SRI.SANMATHI E I, ADVOCATE) AND: M/S KUMAR ORGANIC PRODUCTS LTD. 819/C, USHA KRISHAN CENTRE, 13TH CROSS, 7TH BLOCK, (WEST), JSS COLLEGE CIRCLE, JAYANAGAR, BENGALURU-560082. PAN-AAACK6745P …RESPONDENT (BY SRI.CHANDRASEKHAR V) THIS ITA IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 19.07.2019 PASSED IN ITA

2 NO.1061/BANG/2019, FOR THE ASSESSMENT YEAR 2014-2015 PRAYING TO 1. DECIDE THE FOREGOING QUESTION OF LAW AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON'BLE COURT AS DEEMED FIT AND 2. SET ASIDE THE APPELLATE ORDER DATED 19/07/2019 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, B BENCH, BENGALURU, IN APPEAL PROCEEDINGS NO.ITA NO.1061/BANG/2019 (ANNEXURE- A) FOR THE ASSESSMENT YEAR 2014-2015 AS SOUGHT FOR IN THIS APPEAL, AND TO GRANT SUCH OTHER RELIEF AS DEEMED FIT IN THE INTEREST OF JUSTICE. THIS APPEAL COMING ON FOR ADMISSION THIS DAY, SATISH CHANDRA SHARMA J., DELIVERED THE FOLLOWING: JUDGMENT

In the present case, the tax liability is only Rs.76,97,350/- and therefore, in the light of the Circular dated 08.08.2019, the appeal is not maintainable.

Resultantly, the appeal is dismissed with liberty to the Revenue to prefer a fresh appeal in case need so arises in future.

Sd/- JUDGE Sd/- JUDGE CA

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