THE COMMISSIONER OF INCOME TAX vs. M/S. ADVANTA INDIA LTD.,

ITA/71/2012HC KarnatakaKAHC01021314201217 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court considered CBDT Circular No. 21/2015 dated 10.12.2015, which enhanced the monetary limit for filing appeals before the High Court to Rs. 20 lacs and clarified that it applies retrospectively to pending appeals. The Revenue's counsel submitted that the tax effect in the present appeal was below this enhanced limit. Consequently, following the circular, the High Court held that the appeal stands dismissed. The specific issue decided by the ITAT and the merits of the case were not adjudicated by the High Court. The operative direction was to dismiss the appeal.

What were the facts?

This is an appeal filed by the Revenue (Commissioner of Income Tax and Deputy Commissioner of Income Tax) against an order dated 23.11.2011 passed by the Income Tax Appellate Tribunal (ITAT), Bangalore in ITA No. 824/Bang/2010. The assessee is M/s Advanta India Ltd. The appeal was filed under Section 260A of the Income Tax Act, 1961. The Revenue sought to set aside the ITAT's order. The procedural history leading to the ITAT's order is not detailed in this judgment.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the revised monetary limits for filing appeals before the High Court as per CBDT Circular No. 21/2015. Contentions: Assessee: No specific contentions are recorded for the assessee in this judgment. The appeal was disposed of based on the Revenue's submission regarding the circular. Revenue: The Revenue, through its counsel, placed reliance on CBDT Circular No. 21/2015 dated 10.12.2015, which enhanced the monetary limit for filing appeals before the High Court from Rs. 10 lacs to Rs. 20 lacs. The Revenue stated that the tax effect in the present appeal is below the specified limit of Rs. 20 lacs and, therefore, the appeal may be withdrawn or not pressed as per paragraph-10 of the circular.

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. 71/2012

BETWEEN

THE COMMISSIONER OF INCOME TAX C.R.BUILDING, QUEENS ROAD, BANGALORE.

THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 11(1), C.R.BUILDING, QUEENS ROAD, BANGALORE.

...APPELLANTS

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

AND

M/S ADVANTA INDIA LTD., AGRICULTURAL RESEARCH STATION , KOPPA ROAD, BEGUR P.O, BANGALORE-560 068.

... RESPONDENT

(BY SRI. P.DINESH-ADV)

THIS ITA IS FILED UNDER SECTION 260A OF INCOME TAX ACT, 1961, PRAYING TO SET ASIDE THE ORDER DATED 23.11.2011 PASSED BY THE ITAT, BANGLORE IN ITA NO. 824/BANG/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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