THE ASSISTANT COMMISSSIONER vs. M/S CITY HOSPITAL CHARITABLE TRUST

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ITA/476/2015HC KarnatakaKAHC01041521201504 September 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. This decision was based on the submission that the appeal was not maintainable due to the revised monetary limits for filing appeals, as stipulated in Circular No. 17 of 2019. The Court noted that the Central Board of Direct Taxes, in a communication dated August 20, 2019, clarified that the monetary limit prescribed in Circular No. 17 of 2019 is applicable to all pending appeals. 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 case.

What were the facts?

The Assistant Commissioner of Income Tax, Circle 1(1), Mangalore (the appellant/Revenue) filed an appeal under Section 260-A of the Income Tax Act, 1961, against the order dated March 20, 2015, passed by the Income Tax Appellate Tribunal (ITAT), 'B' Bench, Bengaluru. The appeal pertained to Assessment Year 2011-2012 and challenged the ITAT's decision in ITA No. 676/Bang/2014. The respondent is M/s City Hospital Charitable Trust. The appeal was filed seeking to set aside the ITAT's order and confirm the assessment order passed by the Assistant Commissioner.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the revised monetary limits for filing appeals as per Circular No. 17 of 2019. Assessee's Contention: The learned counsel for the appellant-Revenue submitted that the appeal is not maintainable due to the revised monetary limits. The earlier monetary limit of Rs. 50,00,000/- has been raised to Rs. 1,00,00,000/- as per Circular No. 17 of 2019, amending Circular No. 3 of 2018. The counsel also noted that exceptions exist as per Clause 10 of Circular No. 3 of 2018, but at present, it is unclear if the matter falls under any exception. Therefore, permission to withdraw the appeal was sought, with liberty to revive it if an exception applies. Revenue's Contention: The judgment does not record any specific contention from the Revenue regarding the merits of the case. The Revenue's submission is solely based on the revised monetary limits and the possibility of exceptions.

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.476/2015 BETWEEN:

THE ASSISTANT COMMISSSIONER OF INCOM TAX, CIRCLE 1(1) MANGALORE.

... APPELLANT

(BY SRI JEEVAN J. NEERALGI, ADV.)

AND:

M/S CITY HOSPITAL CHARITABLE TRUST NO.3-30-2389, NANDAVAN, VYASA RAO LANE, KADRI MANGALORE-575003

... RESPONDENT

(BY SRI A.MAHESH CHOWDHARY, ADV.)

THIS ITA IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:20/03/2015 PASSED IN ITA NO.676/BANG/2014, FOR THE ASSESSMENT YEAR 2011-2012. PRAYING TO: I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE. II. ALLOW THE APPEAL AND SET ASIDE THE ORDER DATED 20/03/2015 PASSED BY THE ITAT, 'B' BENCH, BENGALURU IN ITA NO.676/BANG/2014 AND CONFIRM THE ASSESSMENT ORDER

PASSED BY THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1(1), MANGALORE.

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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