THE COMMISSIONER OF INCOME-TAX vs. M/S. KRISHNA ENTERPRISES

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ITA/124/2015HC KarnatakaKAHC01023913201530 August 2019Bench: R DEVDAS,L.NARAYANA SWAMY4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court permitted the appellant-Revenue to withdraw the appeal. The reasoning was based on the submission by the Revenue's counsel regarding the revised monetary limits for filing appeals as per Circular No. 17 of 2019 and the clarification that these limits are applicable to pending matters. The Court granted liberty to the appellant to seek revival of the appeal if it is found that the matter falls within the exceptions carved out in Clause 10 of Circular No. 3 of 2018. No decision was made on the merits of the case.

What were the facts?

The appeal was filed by the Commissioner of Income-Tax and the Assistant Commissioner of Income-Tax (Revenue) against an order dated 05/12/2014 passed by the Income-Tax Appellate Tribunal (ITAT), Bangalore in ITA No.99/BANG/2014, for the assessment year 2006-2007. The Revenue sought to set aside the ITAT's order, which had confirmed the order of the Appellate Commissioner and the order of the Assistant Commissioner of Income-Tax. The appeal was filed under Section 260-A of the Income Tax Act, 1961.

What were the issues?

1. Whether the appeal is maintainable in light of the enhanced monetary limits for filing appeals prescribed by Circular No. 17 of 2019. Assessee (Revenue) arguments: The learned counsel for the appellant-Revenue submitted that the appeal is not maintainable due to the revised monetary limit for filing appeals, as per Circular No. 17 of 2019, which increased the limit from Rs. 50,00,000/- to Rs. 1,00,00,000/-. The counsel also referred to Clause 10 of Circular No. 3 of 2018, which carves out exceptions, and submitted that it was not possible to ascertain at that stage if the matter fell under any exception. Therefore, liberty was sought to move the court for revival if the matter was found to be an exception. The counsel also drew attention to a CBDT communication dated 20th August 2019 clarifying that the new monetary limit applies to pending appeals.

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 30TH DAY OF AUGUST, 2019 PRESENT THE HON’BLE MR.JUSTICE L. NARAYANA SWAMY AND THE HON’BLE MR.JUSTICE R. DEVDAS INCOME TAX APPEAL NO.124/2015 BETWEEN:

1.

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

2.

THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-6(1), RASHTROTHANA BHAVAN, NRUPATHUNGA ROAD, BANGALORE - 560 001.

... APPELLANTS

(BY SRI.K V ARAVIND AND SRI.DILIP.M., ADVS. )

AND:

M/S. KRISHNA ENTERPRISES NO.357/9, 2ND FLOOR, MSR ROAD, MATHIKERE, BANGALORE - 560 054.

... RESPONDENT

(BY SRI.M.LAVA, ADV.)

THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:05/12/2014 PASSED IN ITA NO.99/BANG/2014, FOR THE ASSESSMENT YEAR 2006-2007. PRAYING TO: I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE. II. ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT, BANGALORE IN ITA NO.99/BANG/2014 DATED:05/12/2014 CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-6(1), BANGALORE.

THIS ITA COMING ON FOR HEARING, THIS DAY, DEVDAS J., DELIVERED THE FOLLOWING:

J U D G M E N T The learned counsel for the appellant-Revenue brings to the notice of this Court a Circular bearing No.17 of 2019 dated 08th August, 2019 wherein the further enhancement of monetary limit for filing of appeals by the Departments before the Income- Tax Appellate Tribunals, High Courts and Special Leave Petitions/Appeals before the Supreme Court stands amended, and by the said amendment the earlier monetary limit of Rs.50,00,000/- (Rupees fifty lakh) has not been raised to Rs.1,00,00,000/- (Rupees one crore). The earlier monetary limit was prescribed as per Circular No.3 of 2018 dated 11th July, 2018. In the light of the same, the learned counsel submits that

the appeal is not maintainable and in view of the Circular, the appeal may be permitted to be withdrawn. Further, the learned counsel would also draw the attention of this Court to Clause 10 of the Circular No.3 of 2018 dated 11th July, 2018 wherein certain exceptions are carved out. The learned counsel submits that at the present stage it may not be possible for him to submit whether the matter falls under any of the exceptions. Therefore, it is prayed that liberty may be reserved to the appellants to move this Court, if it is found that the matter falls within the exception carved out in Clause 10 of Circular bearing Number 3 of 2018.

2.

On the query of the Court as to whether the Circular is applicable to pending matters, the learned counsel draws the attention of this Court to the communication dated 20th August, 2019 made by the Central Board of Direct Taxation to all the Chief Commissioners of Income Tax clarifying at paragraph No.3 that the monetary limit prescribed in Circular No.17 of 2019 is applicable to all pending Special Leave Petitions, Appeals, Cross Objections and References.

3.

In view of the above, we permit the appellant to withdraw the appeal for the reasons stated above. Liberty is also granted to the appellant to seek revival of this appeal, if it is found that the matter falls within the exception carved out in Clause 10 of Circular bearing No.3 of 2018.

Sd/- JUDGE

Sd/- JUDGE

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