THE COMMISSIONER OF INCOME-TAX vs. M/S ABS INDIA PVT LTD

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ITA/97/2013HC KarnatakaKAHC01012983201317 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, having a tax effect below Rs. 20 lacs, was to be dismissed. The reasoning was based solely on the circular and the confirmation by the Revenue that the tax effect was below the specified limit. The operative direction was to dismiss the appeal. No issues were left undecided.

What were the facts?

The appeal was filed by the Revenue (Commissioner of Income-Tax and Dy. Commissioner of Income Tax) against an order of the Income Tax Appellate Tribunal (ITAT), Bangalore. The respondent is M/s ABS India Pvt. Ltd. The appeal was filed under Section 260-A of the Income Tax Act, 1961. The Revenue's counsel brought to the court's attention 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. The circular also stated it would apply retrospectively to pending appeals, allowing those below the specified tax limits to be withdrawn or not pressed. The Revenue's counsel confirmed that the tax effect in the present appeal was below the new limit of Rs. 20 lacs.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, considering the revised monetary limits for filing appeals as per CBDT Circular No. 21/2015, and if the tax effect in the present appeal falls below the enhanced limit of Rs. 20 lacs. The Revenue argued that as per CBDT Circular No. 21/2015, the monetary limit for filing appeals before the High Court has been enhanced to Rs. 20 lacs and this applies retrospectively. They stated that the tax effect in the present appeal is below this limit. Therefore, the appeal should be dismissed. The Respondent (assessee) did not record any arguments in the judgment.

Which sections of the Income-tax Act were involved?

Section 260-A

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. 97/2013

BETWEEN

1.

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

2.

THE DY. COMMISSIONER OF INCOME TAX CIRCLE-11(1), RASHTROTHANA BHAVAN, NRUPATHUNGA ROAD, BANGALORE. ... APPELLANTS

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

AND

M/S ABS INDIA PVT. LTD., NO. 49, 100 FEET ROAD, 4TH BLOCK, KORAMANGALA, BANGALORE.

... RESPONDENT

(BY SRI. S.PARTHASARATHI & MS. JINITA CHATTERJEE-ADVs)

THIS ITA IS FILED UNDER SEC.260-A OF I.T. ACT, 1961, PRAYING TO SET ASIDE THE ORDERS PASSED BY THE ITAT, BANGALORE IN ITA NO.224/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.

2.

Learned counsel for the appellants has stated that the tax effect in the present appeal is below the specified limit of Rs.20 lacs.

3.

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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