THE COMMISSIONER OF INCOME TAX vs. M/S INDIAN INSTITUTE OF SCIENCE

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ITA/312/2017HC KarnatakaKAHC01055030201730 August 2019Bench: R DEVDAS,L.NARAYANA SWAMY4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Karnataka, in view of the submissions made by the learned counsel for the appellant-Revenue, permitted the appellant to withdraw the appeal. The court noted the issuance of Circular No. 17 of 2019, which enhanced the monetary limit for filing appeals, and Circular No. 3 of 2018, which provided for certain exceptions. The Revenue's counsel submitted that the appeal might not be maintainable due to the revised monetary limits and sought liberty to withdraw the appeal, reserving the right to seek revival if the matter fell under the exceptions in Clause 10 of Circular No. 3 of 2018. The court also took note of the CBDT's clarification that the new monetary limit applies to pending matters. Therefore, the appeal was withdrawn by the appellant with liberty granted to seek revival.

What were the facts?

The Commissioner of Income Tax and the Deputy Commissioner of Income-Tax (TDS) filed an appeal before the High Court of Karnataka against an order dated August 11, 2016, passed by the Income-Tax Appellate Tribunal (ITAT), Bengaluru, in ITA No. 1262/Bang/2015. This order had confirmed the order of the Appellate Commissioner and the Assistant Commissioner of Income Tax (TDS). The appeal pertains to the assessment year 2011-2012. 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 increased the monetary limit for filing appeals. The counsel also referred to Circular No. 3 of 2018, which carved out exceptions to the monetary limit. The Revenue requested to withdraw the appeal, reserving liberty to revive it if the case fell under the exceptions.

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, read with Circular No. 3 of 2018, under Section 260-A of the Income Tax Act, 1961? Assessee's contentions: The assessee did not make any arguments as the appeal was withdrawn by the Revenue. However, the Revenue's counsel submitted that the appeal may not be maintainable due to the revised monetary limits. The counsel also noted that it was not immediately clear if the matter fell under the exceptions mentioned in Clause 10 of Circular No. 3 of 2018. Revenue's contentions: The Revenue argued that the appeal was not maintainable due to the enhanced monetary limit prescribed in Circular No. 17 of 2019. The Revenue also pointed out that a clarification from the CBDT dated August 20, 2019, indicated that the new monetary limit is applicable to all pending appeals. The Revenue sought permission to withdraw the appeal, reserving liberty to move the court again if the case was found to fall within the exceptions outlined in Clause 10 of Circular No. 3 of 2018.

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.312/2017 BETWEEN:

1.

THE COMMISSIONER OF INCOME TAX NO.59, HMT BHAVAN, 4TH FLOOR, BALLARI ROAD, GANGANAGAR, BENGALURU-560032.

2.

THE DEPUTY COMMISSIONER OF INCOME-TAX (TDS), CIRCLE-2(1), NO.59, HMT BHAVAN, 4TH FLOOR, BALLARY ROAD, GANGANAGAR, BENGALURU-560032.

... APPELLANTS

(BY SRI. K.V. ARAVIND AND SRI DILIP.M, ADVOCATES)

AND:

M/S INDIAN INSTITUTE OF SCIENCE DR.C.V.RAMAN ROAD, MALLESHWARAM, BENGALURU-560012. PAN:AAAT 11501J

... RESPONDENT

(RESPONDENT-SERVED)

THIS ITA IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:11/08/2016 PASSED IN ITA NO.1262/BANG/2015, FOR THE ASSESSMENT YEAR 2011-2012, PRAYING TO I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, II. ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT, BENGALURU IN ITA NO. 1262/BANG/2015 DATED: 11/08/2016 CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE ASST. COMMISSIONER OF INCOME TAX (TDS), CIRCLE-2(1), BENGALURU 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

lnn

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