THE COMMSSIONER OF INCOME TAX vs. M/S KARNATAKA SOAPS & DETERGENTS LTD

ITA/64/2011HC KarnatakaKAHC01022639201117 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 enhanced the monetary limit for filing appeals before the High Court to Rs. 20 lacs and is applicable retrospectively to pending appeals, the present appeal should be dismissed. The Revenue's counsel confirmed that the tax effect in this appeal was below the specified limit of Rs. 20 lacs. Therefore, the appeal was dismissed on the grounds of the revised monetary limit. No decision was made on the merits of the original dispute.

What were the facts?

The appeal was filed by the Revenue (Commissioner of Income Tax and Deputy Commissioner of Income Tax) against an order passed by the Income Tax Appellate Tribunal (ITAT), Bangalore. The assessee is M/s Karnataka Soaps & Detergents Ltd. The appeal was filed under Section 260A 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. 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 should be dismissed in light of CBDT Circular No. 21/2015 enhancing the monetary limit for filing appeals to the High Court to Rs. 20 lacs, and the tax effect in the present appeal being below this limit? Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The Revenue relied on CBDT Circular No. 21/2015 dated 10.12.2015, which increased the monetary threshold for filing appeals before the High Court to Rs. 20 lacs. They argued that this circular applies retrospectively to pending appeals and that the tax effect in the present appeal is below the enhanced limit, warranting dismissal of 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. 64/2011

BETWEEN

THE COMMISSIONER OF INCOME TAX, LTU, JSS TOWERS, BSK III STAGE, BANGALORE.

THE DY.COMMISSIONER OF INCOME TAX, LTU, JSS TOWERS, BSK III STAGE, BANGALORE . …APPELLANTS

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

AND

M/S KARNATAKA SOAPS & DETERGENTS LTD., SANDAL CITY, P.B.NO. 5531, BANGALORE. ... RESPONDENT

(BY SRI.S.PARTHASARATHI & MS.JINITA CHATTERJEE – 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.884/BANG/2010 DATED: 23.9.2010, 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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