THE COMMISSIONER OF INCOME TAX vs. M/S GOPALAN ENTERPRISES

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ITA/2/2015HC KarnatakaKAHC01013235201530 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 revised monetary limits for filing appeals as stipulated in Circular No. 17 of 2019, which increased the threshold from Rs. 50,00,000/- to Rs. 1,00,00,000/-. The Court noted that this revised limit, as clarified by the CBDT, is applicable to pending matters. Liberty was granted to the appellant to seek revival of the appeal if it is subsequently found that the case falls within the exceptions enumerated in Clause 10 of Circular No. 3 of 2018. No decision was made on the merits of the case.

What were the facts?

The Commissioner of Income Tax and the Deputy Commissioner of Income Tax (appellants/Revenue) filed an appeal under Section 260-A of the Income Tax Act, 1961, against an order dated July 18, 2014, passed by the Income Tax Appellate Tribunal (ITAT), Bangalore. The ITAT had confirmed an order of the Appellate Commissioner, which in turn had confirmed the order of the Deputy Commissioner. The assessment year in question is 2004-2005. The appeal was filed before the High Court of Karnataka at Bengaluru.

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 Circular No. 17 of 2019. Assessee's Contention: Not recorded. Revenue's Contention: The Revenue submitted that Circular No. 17 of 2019, dated August 8, 2019, has enhanced the monetary limit for filing appeals from Rs. 50,00,000/- to Rs. 1,00,00,000/-. In light of this, the appeal is not maintainable and may be permitted to be withdrawn. The Revenue also referred to Clause 10 of Circular No. 3 of 2018, which carves out exceptions, and requested liberty to move the court for revival if the matter falls under any of these exceptions. The Revenue further clarified, citing a CBDT communication dated August 20, 2019, that the revised monetary limit is applicable to pending matters.

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.2/2015 BETWEEN:

1.

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

2.

THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-11(3), R P BHAVAN NRUPATHUNGA ROAD BANGALORE-560001

... APPELLANTS

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

AND:

M/S GOPALAN ENTERPRISES INDIA PVT LTD NO. 5, RICHMOND ROAD NO.48, MUSEUM ROAD BANGALORE-560025

... RESPONDENT

(BY SMT.S.R.ANURADHA, ADV.)

THIS ITA IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:18/07/2014 PASSED IN ITA NO.921/BANG/2013, FOR THE ASSESSMENT YEAR 2004-2005.

PRAYING TO: 1. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE. 2. ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT, BANGALORE IN ITA NO.921/BANG/2013 DATED:18/07/2014 CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE DEPUTY COMMISSIONER INCOME TAX, CIRCLE-11(3), 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

lnn

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