PR. COMMISSIONER OF INCOME TAX vs. M/S META PLATFORMS IRELAND LTD

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ITA/697/2023HC KarnatakaKAHC01064974202308 July 2024Bench: KRISHNA S DIXIT,RAMACHANDRA D. HUDDAR2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Karnataka, in its judgment, noted that the learned counsel for the Revenue had argued the matter and, in fairness, sought leave to withdraw the appeal. This request was made in light of Circular No. 17/2019. A Memo dated 08/07/2024 was filed by the appellant, stating that the tax effect was less than one crore rupees, which is below the limit stipulated in CBDT Circular No. 17 of 2019. The Court accepted this submission and disposed of the appeal as having been withdrawn in terms of the Memo filed. No decision on the merits of the case was made.

What were the facts?

This case involves an appeal filed by the Pr. Commissioner of Income Tax (International Taxation) and the Joint Commissioner of Income Tax against an order passed by the Income Tax Appellate Tribunal (ITAT), Bench, Bengaluru. The appeal pertains to Assessment Year 2014-2015 and concerns M/s Meta Platforms Ireland Ltd. (formerly Facebook Ireland Ltd.) as the respondent-assessee. The appeal was filed under Section 260-A of the Income Tax Act, 1961, challenging the ITAT's order dated 03/08/2023 in IT(IT)A No. 230/Bang/2023. The revenue sought to set aside the ITAT's appellate order.

What were the issues?

The primary issue before the High Court was whether the appellate order passed by the ITAT for Assessment Year 2014-2015 in the case of M/s Meta Platforms Ireland Ltd. should be set aside. The revenue, through its counsel, argued for the withdrawal of the appeal. The basis for this request was Circular No. 17/2019 issued by the CBDT, which stipulates a monetary limit for filing appeals. The revenue's contention was that the tax effect in this case was less than one crore rupees, falling below the prescribed limit in the aforementioned circular. The assessee's arguments, if any, are not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

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NC: 2024:KHC:25756-DB ITA No. 697 of 2023

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF JULY, 2024 PRESENT THE HON'BLE MR JUSTICE KRISHNA S DIXIT AND THE HON'BLE MR JUSTICE RAMACHANDRA D. HUDDAR INCOME TAX APPEAL NO. 697 OF 2023 BETWEEN:

1.

PR. COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) KORMANGALA, BANGALORE.

2.

THE JOINT COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION, CIRCLE 1(1), KORAMANGALA, BANGALORE. …APPELLANTS (BY SRI. SANMATHI E I.,ADVOCATE)

AND:

M/S META PLATFORMS IRELAND LTD., (FORMERLY KNOWN AS FACEBOOK IRELAND LTD.,) 4 GRAND CANAL SQUARE, GRAND CANAL HARBOUR, DUBLIN 2 D02X25, IRELAND, PAN. AAECF5080A …RESPONDENT (BY SRI. KARAN JOSEPH.,ADVOCATE)

THIS ITA / INCOME TAX APPEAL UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 03/03/2023 PASSED IN IT(IT)A NO.230/BANG/2023, FOR THE ASSESSMENT YEAR 2014-2015. PRAYING TO (1) DECIDE THE FOREGOING QUESTION OF LAW AND / OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON’BLE COURT AS DEEMED FIT AND SET ASDIE THE APPELLATE ORDER DATED 03/08/2023 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, BENGALURU, AS SOUGHT FOR, IN THE RESPONDENT-ASSESSEES CASE, IN APPEAL PROCEEDINGS IN IT(IT)A NO. 230/BANG/2023 FOR A.Y.2014-

Digitally signed by SHARADA VANI B Location: HIGH COURT OF KARNATAKA

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NC: 2024:KHC:25756-DB ITA No. 697 of 2023

2015, ANNEXURE –A AND GRANT SUCH OTHER RELIEF AS DEEMED FIT, INTEREST OF JUSTICE.

THIS INCOME TAX APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, KRISHNA S DIXIT.J., DELIVERED THE FOLLOWING: JUDGMENT

Learned counsel appearing for the Revenue having argued the matter, in all fairness seeks leave of the Court to withdraw the Appeal in the light of Circular No.17/2019. A Memo dated 08/07/2024 has also been filed to the same effect. The same reads as under:

“The appellant respectfully prays that this Hon’ble Court to permit appellants to withdraw the above income tax appeal as Tax effect is less than one crore which is less than prescribed limit as stipulated in Circular No.17 of 2019 issued by CBDT dated 8/8/2019 in the interest of justice.”

In view of the above, Appeal is disposed off as having been withdrawn in terms of the Memo filed.

Sd/- JUDGE

Sd/- JUDGE Bsv/List No.: 1 Sl No.: 33.3

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