PR COMMISSIONER OF INCOME TAX vs. M/S NAMDHARI SEEDS P LTD

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ITA/359/2015HC KarnatakaKAHC01037065201530 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 court noted the submission by the Revenue's counsel regarding Circular No. 17 of 2019, which revised the monetary limit for filing appeals. The counsel submitted that the appeal might not be maintainable under the new limits and sought to withdraw it. The court also took note of the clarification from the Central Board of Direct Taxes (CBDT) dated August 20, 2019, confirming that the revised monetary limits are applicable to pending matters. Liberty was granted 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 original appeal.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax and Assistant Commissioner of Income Tax (Revenue) against an order dated January 22, 2015, passed by the Income Tax Appellate Tribunal (ITAT) in ITA No. 694/Bang/2013 for Assessment Year 2009-2010. The respondent is M/s Namdhari Seeds Pvt. Ltd. The Revenue sought to decide questions of law arising from the ITAT's order. During the hearing, the Revenue's counsel brought to the court's notice Circular No. 17 of 2019, dated August 8, 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 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 appeal filed by the Revenue is maintainable in light of the revised monetary limits prescribed by Circular No. 17 of 2019, which increased the threshold for filing appeals to Rs. 1,00,00,000 from Rs. 50,00,000, as per Section 260-A of the Income Tax Act, 1961. Contentions: Assessee: No arguments recorded for the assessee on this specific issue. Revenue: The Revenue contended that the appeal may not be maintainable due to the revised monetary limits. They relied on Circular No. 17 of 2019 and Circular No. 3 of 2018. The Revenue also sought liberty to move the court for revival if the matter falls under the exceptions mentioned in Clause 10 of Circular No. 3 of 2018, as they could not ascertain this at the present stage. They further relied on a CBDT clarification dated August 20, 2019, stating that the revised monetary limits are applicable 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.359/2015 BETWEEN:

1.

PR COMMISSIONER OF INCOME TAX C.R.BUILDINGS, QUEENS ROAD, BANGALORE-560001.

2.

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 2-(1), BANGALORE

... APPELLANTS

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

AND:

M/S NAMDHARI SEEDS P. LTD., SRI SAI ARCADE, NO.8, 12TH CROSS, 1ST PHASE, IDEAL HOMES TOWNSHIP, RAJARAJESHWARI NAGAR, BANGALORE-560098 PAN: AAACN6725E

... RESPONDENT

(BY SRI M.LAVA, ADV.)

THIS ITA IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:22/01/2015 PASSED IN ITA

NO. 694/BANG/2013, FOR THE ASSESSMENT YEAR 2009-2010. PRAYING TO: 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 AND MODIFY THE APPELLATE ORDER DATED: 22/01/2015 PASSED BY THE ITAT, 'B' BENCH, BENGALURU, IN APPEAL PROCEEDINGS NO. ITA NO. 694/B/2013 FOR ASSESSMENT YEAR 2009-2010 AS SOUGHT FOR IN THIS APPEAL.

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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