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

ITA/77/2012HC KarnatakaKAHC01021241201217 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 applied 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 Rs. 20 lacs limit. Therefore, the appeal was dismissed on the grounds of the revised monetary threshold for appeals. No decision was made on the merits of the original dispute between the assessee and the Revenue.

What were the facts?

This case involves an appeal 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) in ITA No. 825/BANG/2010. The assessee is M/s Advanta India Ltd. The appeal was filed under Section 260A of the Income Tax Act, 1961. The High Court of Karnataka was hearing the appeal. 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 stated to apply retrospectively to pending appeals.

What were the issues?

1. Whether the present appeal, filed by the Revenue, should be dismissed in light of the revised monetary limit for filing appeals before the High Court as per CBDT Circular No. 21/2015, if the tax effect is below the new limit? Contentions: Assessee: Not recorded. Revenue: The Revenue contended that the tax effect in the present appeal is below the enhanced specified limit of Rs. 20 lacs. They relied on CBDT Circular No. 21/2015 dated December 10, 2015, which stipulated that pending appeals with a tax effect below the specified limits may be withdrawn or not pressed. The circular also clarified that the enhanced limit applies retrospectively to pending appeals.

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. 77/2012

BETWEEN

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

THE DEPUTY COMMISSIONER OF INCOME TAX , CIRCLE 11(1), C.R.BUIDLING, 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 IN ITA NO. 825/BANG/2010 PASSED BY THE ITAT, 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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