PR COMMISSIONER vs. M/S SANGEETHA

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ITA/249/2017HC KarnatakaKAHC01030797201730 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the Revenue's counsel regarding the enhanced monetary limits for filing appeals as per Circular No. 17 of 2019, which superseded Circular No. 3 of 2018. A clarification from the CBDT dated 20th August 2019 confirmed that the revised monetary limit was applicable to all pending appeals. The Court granted liberty to the appellant to seek revival of the appeal if it was found that the matter fell within the exceptions carved out in Clause 10 of Circular No. 3 of 2018. No specific finding was made on the merits of the original appeal, and the issue of whether the matter fell under the exceptions was left open for future consideration if the appeal was revived.

What were the facts?

This is an appeal filed by the Revenue (Pr. Commissioner of Income Tax-6 and Addl. Commissioner of Income Tax) against an order dated 03/11/2016 passed by the Income-Tax Appellate Tribunal (ITAT), 'B' Bench, Bengaluru, in ITA No. 1185/BANG/2016 for the Assessment Year 2010-2011. The Revenue sought to set aside the ITAT's order. The appeal was filed under Section 260-A of the Income Tax Act, 1961. During the hearing, the Revenue's counsel brought to the court's notice Circular No. 17 of 2019, which enhanced the monetary limit for filing appeals. The counsel also referred to Circular No. 3 of 2018, which carved out certain exceptions.

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 and Circular No. 3 of 2018, and if the matter falls within the exceptions provided in Clause 10 of Circular No. 3 of 2018. Assessee's Contentions: The judgment does not record any specific contentions from the assessee (M/s Sangeetha Mobiles Pvt. Ltd.). Revenue's Contentions: The Revenue's counsel submitted that the appeal is not maintainable due to the revised monetary limit. They also stated that it was not possible at that stage to determine if the matter fell under the exceptions in Clause 10 of Circular No. 3 of 2018 and prayed for liberty to move the court for revival if an exception applied. They relied on Circular No. 17 of 2019 and Circular No. 3 of 2018, and a CBDT clarification dated 20th August 2019 confirming the applicability of the revised monetary limit 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.249/2017 BETWEEN:

1.

PR. COMMISSIONER OF INCOME TAX-6 BMTC COMPLEX, KORAMANGALA BANGALORE

2.

ADDL. COMMISSIONER OF INCOME TAX RANGE-12, BMTC COMPLEX KORAMANGALA BANGALORE

... APPELLANTS

(BY SRI. E.R. INDRAKUMAR, SENIOR COUNSEL FOR SRI. E.I. SANMATHI, ADVOCATE)

AND

M/S SANGEETHA MOBILES PVT. LTD. 37, SRUBUVASA”NILYAA”, SANNIDHI ROAD, BASAVANAGUDI BANGALORE-560 004

... RESPONDENT

(BY SRI. M. LAVA, ADVOCATE)

THIS ITA IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:03/11/2016

PASSED IN ITA NO.1185/BANG/2016, FOR THE ASSESSMENT YEAR 2010-2011 PRAYING TO (A) 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. (B) SET ASIDE THE APPELLATE ORDER DATED:03/11/2016 PASSED BY THE ITAT, 'B' BENCH, BENGALURU IN ITA NO. 1185/BANG/2016 FOR ASSESSMENT YEAR 2010-11, AS SOUGHT FOR IN THIS APPEAL AND ETC.

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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