THE COMMISSIONER OF INCOME TAX vs. M/S KEANE INDIA LIMITED

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ITA/147/2014HC KarnatakaKAHC01011873201430 August 2019Bench: R DEVDAS,L.NARAYANA SWAMY4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Karnataka permitted the appellant-Revenue to withdraw the appeal. The decision was based on the submission that the appeal was not maintainable due to the revised monetary limits for filing appeals, as stipulated in CBDT Circular No. 17 of 2019. The Court noted that this circular, which raised the monetary threshold to Rs. 1,00,00,000/-, was applicable to pending matters, as clarified by a subsequent communication from the CBDT dated August 20, 2019. The Court granted liberty to the appellant to seek revival of the appeal if it was later found that the matter fell within the exceptions provided in Clause 10 of Circular No. 3 of 2018. No decision was made on the merits of the original appeal.

What were the facts?

The Revenue, comprising the Commissioner of Income Tax and the Assistant Commissioner of Income Tax, filed an appeal under Section 260-A of the Income Tax Act, 1961, against an order dated September 27, 2013, passed by the Income-Tax Appellate Tribunal (ITAT), Bangalore, in MP No. 71/Bang/2013 (in ITA No. 713/Bang/2011). The appeal pertained to the assessment year 2006-2007 and challenged the ITAT's order which had presumably set aside the orders of the lower authorities. The Revenue sought to have the ITAT's order set aside and the orders of the Appellate Commissioner and Assistant Commissioner confirmed. The appeal was filed before the High Court of Karnataka.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the revised monetary limits for filing appeals as per CBDT Circular No. 17 of 2019. Assessee's Contention: The learned counsel for the appellant-Revenue submitted that the appeal is not maintainable due to the revised monetary limit. The Revenue relied on Circular No. 17 of 2019, which increased the monetary limit for filing appeals to Rs. 1,00,00,000/- from Rs. 50,00,000/-, as per Circular No. 3 of 2018. The counsel also referred to Clause 10 of Circular No. 3 of 2018, which carves out exceptions, and stated 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 an exception applied. Revenue's Contention: The Revenue's argument was primarily focused on the maintainability of the appeal based on the monetary limits prescribed by the circulars. The Revenue did not present arguments on the merits of the case.

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.147/2014 BETWEEN:

1.

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

2.

THE ASST. COMMISSIONER OF INCOME TAX CIRCLE-11 (5), RASHTROTHANA BHAVAN, NRUPATHUNGA ROAD, BANGALORE. ... APPELLANTS (BY SRI K.V. ARAVIND AND SRI DILIP M., ADVOCATES)

AND:

M/S. KEANE INDIA LIMITED (KEANE INTERNATIONAL (INDIA) PVT LTD., NOW MERGED WITH KEANE INDIA LTD.,) NO.17, SOUTH END ROAD, BASAVANAGUDI, BANGALORE-560 004. ... RESPONDENT (BY SRI CHYTHANYA K.K., ADVOCATE)

THIS ITA IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 27.09.2013 PASSED IN MP NO.71/BANG/2013 (IN ITA NO.713/BANG/2011), FOR THE ASSESSMENT YEAR 2006-2007. PRAYING TO: 1 FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE. 2. ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE ITAT, BANGALORE MP NO. 71/BANG/2013 (IN ITA NO.713/BANG/2011) DATED:27/09/2013 AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-11(5), 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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