THE COMMISSIONER vs. M/S CANARA BANK

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ITA/31/2017HC KarnatakaKAHC01055166201704 September 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 by the Revenue's counsel regarding Circular No. 17 of 2019, which increased the monetary threshold for filing appeals before the ITAT, High Courts, and Supreme Court. The Revenue argued that the appeal might not be maintainable under the revised limits. The court was also informed that the revised monetary limit is applicable 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 decision was made on the merits of the case.

What were the facts?

The appeal was filed by the Revenue (Commissioner of Income Tax and Addl. Commissioner of Income Tax) against an order of the Income Tax Appellate Tribunal (ITAT), Bengaluru, dated March 30, 2016, in ITA No. 684/Bang/2012. The ITAT's order had confirmed the order of the Appellate Commissioner, which in turn had confirmed the order of the Joint Commissioner of Income Tax, LTU, Bengaluru. The assessment year in question was 2008-2009. The Revenue sought to set aside the ITAT'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 under the revised limits and sought permission to withdraw.

What were the issues?

1. Whether the present appeal is maintainable in light of the enhanced monetary limits for filing appeals as per Circular No. 17 of 2019, issued by the Central Board of Direct Taxes (CBDT)? (Question of law) The Revenue argued that Circular No. 17 of 2019, dated August 8, 2019, has increased the monetary limit for filing appeals from Rs. 50,00,000 to Rs. 1,00,00,000. The Revenue contended that the appeal may not be maintainable due to this revised limit. They also referred to Clause 10 of Circular No. 3 of 2018, which carves out exceptions, and submitted that it was not possible at that stage to determine if the matter fell under any of these exceptions. They sought liberty to move the court for revival if it did. The Revenue also pointed to a CBDT communication dated August 20, 2019, clarifying that the new monetary limit applies to pending matters. The judgment records no arguments from the Assessee (M/s Canara Bank).

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 4TH DAY OF SEPTEMBER, 2019 PRESENT THE HON’BLE MR.JUSTICE L. NARAYANA SWAMY AND THE HON’BLE MR.JUSTICE R. DEVDAS INCOME TAX APPEAL No.31/2017 BETWEEN:

1.

THE COMMISSIONER OF INCOME TAX, LTU, JSS TOWERS BSK III STAGE, BENGALURU - 560085

2.

THE ADDL COMMISSIONER OF INCOME TAX LTU, JSS TOWERS, BSK III STAGE, BENGALURU – 560085 ... APPELLANTS

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

AND:

M/S CANARA BANK BSCA SECTION, FM & S WING, HO, NO.112, JC ROAD, BENGALURU – 560002

... RESPONDENT

(BY SRI BALARAM R. RAO, ADV.)

THIS ITA IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:30/03/2016 PASSED IN ITA NO.684/BANG/2012, FOR THE ASSESSMENT YEAR 2008-2009. PRAYING TO: 1. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE. 2. ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE ITAT, BENGALURU IN ITA NO. 684/BANG/2012

DATED:30/03/2016 CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE JOINT COMMISSIONER OF INCOME TAX, LTU, BENGALURU.

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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