THE COMMISSIONER OF INCOME TAX vs. M/S KARNATAKA POWER TRANSMISSION

ITA/92/2013HC KarnatakaKAHC01014647201317 December 2015Bench: S.SUJATHA,VINEET SARAN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court considered CBDT Circular No. 21/2015, which revised the monetary limit for filing appeals before the High Court to Rs. 20 lacs and stated that it applies retrospectively to pending appeals. The Revenue's counsel confirmed that the tax effect in the present appeal was below this Rs. 20 lacs limit. Based on this circular and the stated tax effect, the High Court held that the appeal stands dismissed. The reasoning is that the appeal no longer meets the threshold for being pursued before the High Court as per the revised policy of the Revenue. The operative direction is the dismissal of the appeal.

What were the facts?

This case involves an appeal filed by the Commissioner of Income Tax and the Deputy Commissioner of Income-Tax (the Revenue) against an order passed by the Income Tax Appellate Tribunal (ITAT), Bangalore. The assessee is M/s Karnataka Power Transmission Corporation 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). This circular enhanced the monetary limit for filing appeals before the High Court from Rs. 10 lacs to Rs. 20 lacs and clarified that it would apply retrospectively to pending appeals. 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 given 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 Circular No. 21/2015. Consequently, the appeal may be withdrawn or not pressed. 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. 92/2013

BETWEEN

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

THE DEPUTY 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 POWER TRANSMISSION CORPORATION LTD., 7TH FLOOR, CAUVERY BHAVAN, K.G. ROAD, BANGALORE-560 0090.

... RESPONDENT

(BY SRI. CHYTHANYA.K.K-ADV)

THIS ITA IS FILED UNDER SECTION 260A OF THE INCOME TAX ACT, 1961, PRAYING TO SET ASIDE THE ORDERS PASSED BY THE ITAT, BANGALORE IN ITA NO.249/BANG/2012 DATED: 19.10.2012, 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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