THE COMMISSIONER OF INCOME TAX vs. M/S. FIRST INDIA CORPORATION

ITA/73/2012HC KarnatakaKAHC01021315201217 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court noted that the Revenue had placed before it 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 circular also clarified that it would apply retrospectively to pending appeals, which, if below the specified tax limits, may be withdrawn or not pressed. The learned counsel for the Revenue stated that the tax effect in the present appeal was below the specified limit of Rs. 20 lacs. Accordingly, in view of the said circular and the stated tax effect, the High Court held that the appeal stands dismissed. No specific issue was left undecided; the appeal was disposed of based on the circular.

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 12.12.2011 passed by the Income Tax Appellate Tribunal (ITAT), Bangalore in ITA No. 1441/Bang/2010. The respondent is M/s First India Corporation. The appeal is filed under Section 260A of the Income Tax Act, 1961. The Revenue has placed before the High Court a Circular No. 21/2015 dated 10.12.2015 issued by the Central Board of Direct Taxes (CBDT). This circular enhances the monetary limit for filing appeals before the High Court from Rs. 10 lacs to Rs. 20 lacs and clarifies that it applies retrospectively to pending appeals.

What were the issues?

1. Whether the present 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 if the tax effect in this appeal is below the specified limit. Contentions: Assessee: Not recorded. Revenue: The Revenue contended that the tax effect in the present appeal is below the specified limit of Rs. 20 lacs as per Circular No. 21/2015, and therefore, the appeal may be withdrawn or not pressed.

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. 73/2012

BETWEEN

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

THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 11(3), BANGALORE.

...APPELLANTS

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

AND

M/S FIRST INDIA CORPORATION, 5TH FLOOR, BLOCK ‘A’ LAKEVIEW, BAGAMANE TECH PARK, C.V.RAMAN NAGAR, BANGALORE-560 093.

... 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 DATED: 12.12.2011 PASSED BY THE ITAT, BANGALORE IN ITA NO.1441/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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