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

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ITA/431/2015HC KarnatakaKAHC01035730201530 August 2019Bench: R DEVDAS,L.NARAYANA SWAMY4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court permitted the appellants (Revenue) to withdraw the appeals. The reasoning was based on the revised monetary limits for filing appeals as per Circular No. 17 of 2019, which amended the earlier limits prescribed in Circular No. 3 of 2018. The Court noted the clarification from the CBDT that these revised limits are applicable to pending matters. The Revenue had submitted that the appeals might not be maintainable due to these revised limits and sought permission to withdraw. Liberty was granted to the appellants to seek revival of these appeals 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 dispute.

What were the facts?

The appeals were filed by the Commissioner of Income Tax (TDS) and the Dy. Commissioner of Income-Tax (TDS) against an order of the Income-Tax Appellate Tribunal (ITAT), Bangalore, dated February 27, 2015. The assessment year in question was 2010-2011. The appeals were filed under Section 260-A of the Income Tax Act, 1961. The revenue sought to set aside the ITAT's order and confirm the orders of the Appellate Commissioner and the Dy. Commissioner of Income Tax (TDS). The appeals were listed for hearing before the High Court of Karnataka.

What were the issues?

1. Whether the appeals filed by the Revenue are maintainable in light of the revised monetary limits for filing appeals as per Circular No. 17 of 2019 and Circular No. 3 of 2018, and if the matter falls under any exceptions carved out in Clause 10 of Circular No. 3 of 2018. The Revenue argued that Circular No. 17 of 2019, which enhanced the monetary limit for filing appeals from Rs. 50,00,000/- to Rs. 1,00,00,000/-, is applicable. They also referred to Circular No. 3 of 2018, which carves out exceptions. The Revenue submitted that they may not be able to determine at that stage if the matter falls under these exceptions and sought liberty to move the court later if it does. The Revenue relied on Circular No. 17 of 2019 and Circular No. 3 of 2018, and a communication dated August 20, 2019, from the CBDT clarifying the applicability of the revised limits 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 Nos.431/2015 & 89/2016 BETWEEN:

1.

THE COMMISSIONER OF INCOME TAX TDS, NO.59, HMT BHAVAN, 4TH FLOOR, BELLARY ROAD, GANGANAGAR, BANGALORE-560032

2.

THE DY. COMMISSIONER OF INCOME-TAX (TDS) CIRCLE-16(2), NO.59, HMT BHAVAN, 4TH FLOOR, BELLARY ROAD, GANGANAGAR, BANGALORE-560032

... APPELLANTS

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

AND:

M/S INDIAN INSTITUTE OF SCIENCE SCIENCE INSTITUTE POST OFFICE, BANGALORE-560 012, PAN:AAATI 1501J

... RESPONDENT

(BY SRI. PRASHANTHA KUMAR, ADVOCATE)

THESE ITA’S ARE FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:27/02/2015 PASSED IN ITA NO. 1589/BANG/2014 & S.P.NO.258/BANG/2014, FOR THE ASSESSMENT YEAR 2010- 2011, PRAYING TO I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE. II. ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT, BANGALORE IN ITA NO.1589/BANG/2014 & SP NO. 258/BANG/2014 DATED:27/02/2015 AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DY. COMMISSIONER OF INCOME TAX (TDS), CIRCLE- 16(2), BANGALORE.

THESE ITA’S 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

these appeals are not maintainable and in view of the Circular, these appeals 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 appellants to withdraw these appeals for the reasons stated above. Liberty is also granted to the appellants to seek revival of these appeals, 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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