PR COMMISSIONER OF INCOME TAX vs. M/S PRASAD TECHNOLOGY PARK PVT LTD

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ITA/280/2017HC KarnatakaKAHC01055029201730 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 applicability of this circular to pending matters as clarified by the CBDT. 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 No specific finding was made on the merits of the original appeal, as it was withdrawn.

What were the facts?

The appeal was filed by the Revenue (Pr. Commissioner of Income Tax and Deputy Commissioner of Income Tax) against an order dated 22/09/2016 passed by the Income Tax Appellate Tribunal (ITAT) in ITA No. 1498/BANG/2015 for Assessment Year 2010-2011. The Revenue's counsel brought to the High Court's notice Circular No. 17 of 2019 dated 08.08.2019, which enhanced the monetary limit for filing appeals from Rs. 50,00,000/- to Rs. 1,00,00,000/-. The counsel submitted that the appeal might not be maintainable due to this revised limit. The counsel also referred to Clause 10 of Circular No. 3 of 2018, which carves out exceptions, and sought liberty to move the court if the matter fell under any of these exceptions. A clarification from the CBDT dated 20.08.2019 confirmed the applicability of the revised monetary limit to pending appeals.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the enhanced monetary limits 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/-. Assessee's Contention: The assessee did not make any arguments as the appeal was withdrawn by the Revenue. The Revenue's counsel argued that the appeal is not maintainable due to the revised monetary limit and sought liberty to withdraw the appeal, reserving the right to seek revival if the matter falls under exceptions mentioned in Clause 10 of Circular No. 3 of 2018. The Revenue relied on Circular No. 17 of 2019 and Circular No. 3 of 2018, and a CBDT clarification dated 20.08.2019.

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.280/2017 BETWEEN:

1.

PR. COMMISSIONER OF INCOME TAX C R BUILDINGS - 5, BMTC COMPLEX, KORAMANGALA, BANGALORE

2.

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE - 5 (1) (2), BMTC COMPLEX, KORAMANGALA, BANGALORE

...APPELLANTS

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

AND:

M/S PRASAD TECHNOLOGY PARK PVT LTD NO 2/10 3RD FLOOR, 80 FEET ROAD, POOJAR LAYOUT RMV II STAGE, BANGALORE - 94 PAN : AAACP8351J

... RESPONDENT

(BY SMT. JINITA CHATTERJEE AND SRI. S PARTHASARATHI, ADVOCATES)

THIS ITA IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:22/09/2016 PASSED IN ITA NO.1498/BANG/2015, 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:22/09/2016 PASSED BY THE ITAT, 'A' BENCH, BENGALURU, IN APPEAL PROCEEDINGS NO. ITA NO. 1498/BANG/2015 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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