THE COMMISSIONER OF INCOME-TAX vs. M/S ADVANTA INDIA LTD.,

PDF · subscribers
ITA/288/2013HC KarnatakaKAHC01051598201330 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 introduction of Circular No.17 of 2019, which enhanced the monetary limit for filing appeals before the ITAT, High Courts, and Supreme Court from Rs.50,00,000/- to Rs.1,00,00,000/-. The court was also informed by a communication from the CBDT dated 20th August, 2019, that this revised monetary limit is applicable to all pending appeals. Consequently, the Revenue submitted that the appeal was not maintainable. 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 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 Deputy Commissioner of Income-Tax (Revenue) against an order dated 31/12/2012 passed by the Income-Tax Appellate Tribunal (ITAT), Bangalore, in ITA No.1049/HYD/2004. The ITAT had confirmed an order of the Appellate Commissioner, which in turn had likely overturned an order of the Deputy Commissioner. The assessment year in question is 2001-2002. The Revenue sought to set aside the ITAT's order and confirm the Deputy Commissioner's order. 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 submitted that the appeal might not be maintainable due to this revised limit and sought permission to withdraw.

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, issued under Section 260-A of the Income-Tax Act, 1961? The Revenue argued that the appeal may not be maintainable due to the revised monetary limits stipulated in Circular No.17 of 2019, which superseded Circular No.3 of 2018. The Revenue's counsel also referred to Clause 10 of Circular No.3 of 2018, which carves out exceptions, and stated that it was not possible at that stage to determine if the present case fell under any of those exceptions. Therefore, the Revenue sought liberty to move the court for revival if the matter was found to fall within an exception. The Revenue relied on Circular No.17 of 2019 and Circular No.3 of 2018. The judgment does not record any specific arguments from the Respondent (assessee).

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.288/2013 BETWEEN:

1.

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

2.

THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-1(1) HYDERABAD, NO.59, HMT BHAVAN, 6TH FLOOR, BELLARY ROAD, GANGANAGAR, BANGALORE-560 032 ... APPELLANTS

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

AND:

M/S ADVANTA INDIA LTD., "UNICOME HOUSE" PLOT NO.3-5, NO.157/5, BALAJI ENCLAVE, TRANSPORT ROAD, NEAR GUNROCK, DIAMOND POINT, SECUNDERABAD, ANDHRA PRADESH-500 009

... RESPONDENT

(BY SRI P.DINESH, ADV.)

THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961, ARISING OUT OF ORDER DATED 31/12/2012 PASSED IN ITA

NO.1049/HYD/2004, FOR THE ASSESSMENT YEAR 2001-2002, PRAYING TO: I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, II. ALLOW THE APPEAL AND SET ASIDE THE ORDER OF THE ITAT, BANGALORE IN ITA NO.1049/HYD/2004 DATED 31/12/2012 CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(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

lnn

More judgments on Section 260-A

All 2,570 judgments and leading authorities on Section 260-A →

Recent GST High Court judgments

Search GST case law →