THE COMMISSIONER OF INCOME TAX vs. BOSCH LIMITED

ITA/70/2010HC KarnatakaKAHC01021011201017 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 stated that it would apply retrospectively to pending appeals, the present appeal, having a tax effect below Rs. 20 lacs, stands dismissed. The reasoning is based solely on the application of the circular and the statement made by the Revenue's counsel regarding the tax effect. The operative direction is that the appeal is dismissed. No issue was expressly left undecided.

What were the facts?

This is an appeal filed by the Revenue against an order passed by the Income Tax Appellate Tribunal (ITAT), Bangalore. The assessee is Bosch Limited (formerly Motor Industries Co. 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. The circular also clarified that it would apply retrospectively to pending appeals below the specified tax limits, which could be withdrawn or not pressed. 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 in light of the revised monetary limits for filing appeals as per CBDT Circular No. 21/2015. The Revenue argued that the tax effect in the present appeal is below the specified limit of Rs. 20 lacs, as per CBDT Circular No. 21/2015, which allows for withdrawal or non-pressing of pending appeals if the tax effect is below the enhanced limit. The Revenue relied on Circular No. 21/2015 dated 10.12.2015. The judgment does not record any arguments from the assessee.

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. 70/2010

BETWEEN

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

THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-12(1), C.R.BUILDING, QUEENS ROAD, BANGALORE.

...APPELLANTS

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

AND

BOSCH LIMITED (FORMERLY MOTOR INDUSTRIES CO. LTD.,) HOSUR ROAD, ADUGODI, BANGALORE-560 030.

... RESPONDENT

(BY SRI. T.SURYANARAYANA FOR KING & PARTRIDGE-ADV)

THIS ITA IS FILED UNDER SECTION 260A OF INCOME TAX ACT, 1961, PRAYING TO SET ASIDE THE ORDER PASSED BY THE ITAT, BANGALORE IN ITA NO.329/BANG/2009 DATED: 31.8.2009, 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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