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

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ITA/435/2012HC KarnatakaKAHC01049699201230 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 applicability of Circular No. 17 of 2019, which increased the monetary limit for filing appeals. The court noted the Revenue's submission that the appeal might not be maintainable under the revised limits and that the CBDT had clarified the circular's applicability to pending matters. The court granted liberty to the appellant to seek revival of the appeal if it was later found that the matter fell within the exceptions specified 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 Commissioner of Income-Tax and the Deputy Commissioner of Income-Tax against an order of the Income-Tax Appellate Tribunal (ITAT), Bangalore, for the assessment year 2006-2007. The ITAT's order was dated July 31, 2012, in ITA No. 203/BANG/2011. The Revenue sought to set aside the ITAT's order and confirm the orders of the Appellate Commissioner and the Deputy Commissioner. 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. The Revenue submitted that the appeal might not be maintainable due to this revised limit.

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. Assessee's Contentions: The assessee did not explicitly argue any points as the appeal was withdrawn by the Revenue. However, the Revenue's counsel indicated that it might not be possible to determine at that stage if the matter fell under any exceptions carved out in Clause 10 of Circular No. 3 of 2018, which was the earlier circular prescribing monetary limits. Revenue's Contentions: The Revenue contended that the appeal might not be maintainable due to the revised monetary limits stipulated in Circular No. 17 of 2019. They further submitted that the Central Board of Direct Taxes (CBDT) communication dated August 20, 2019, clarified that the new monetary limit is applicable to pending appeals. The Revenue sought permission to withdraw the appeal and requested liberty to seek revival if the matter fell under the exceptions 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.435/2012 BETWEEN:

1.

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

2.

THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-11(1) C R BUILDING, QUEENS ROAD BANGALORE

... APPELLANTS

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

AND:

M/S ADVANTA INDIA LTD UNICORN HOUSE, PLOT NO.3-5 157/5, BALAJI ENCLAVE TRANSPORT ROAD NEWAR GUNROCK DIAMOND POINT SECUNDERABAD-09

NOW AT NO.405, 4TH FLOOR, A WING, CARLATON TOWERS, NO.1, AIRPORT ROAD, BANGALORE

... RESPONDENT

(BY SRI P.DINESH, ADV.)

THIS ITA IS FILED UNDER SECTION 260-A OF I.T.ACT, 1961 ARISING OUT OF ORDER DATED 31/07/2012 PASSED IN ITA NO.203/BANG/2011, FOR THE ASSESSMENT YEAR 2006-2007, PRAYING TO: I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, II. ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE ITAT, BANGALORE IN ITA NO.203/BANG/2011 DATED 31/07/2012 AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX OFFICER, CIRCLE- 11(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

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