THE COMMISSIONER OF INCOME-TAX, vs. THE DIRECTOR OF TECHNICAL EDUCATION

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ITA/541/2016HC KarnatakaKAHC01044567201630 August 2019Bench: R DEVDAS,L.NARAYANA SWAMY4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Karnataka permitted the appellant-Revenue to withdraw the appeal. This decision was based on the submission by the Revenue's counsel regarding the revised monetary limits for filing appeals as per Circular No.17 of 2019, which increased the threshold from Rs.50 lakh to Rs.1 crore. The Court noted that the Central Board of Direct Taxes (CBDT) had clarified vide communication dated August 20, 2019, that the new monetary limit is applicable to all pending appeals. The Court granted liberty to the appellant to seek revival of the appeal if it was found that the matter fell within the exceptions carved out in Clause 10 of Circular No.3 of 2018. No finding was given on the merits of the original dispute.

What were the facts?

The Commissioner of Income-Tax, TDS and the Assistant Commissioner of Income-Tax, TDS (Appellants/Revenue) filed an appeal before the High Court of Karnataka against an order dated May 20, 2016, passed by the Income-Tax Appellate Tribunal (ITAT) in ITA No.1126/Bang/2015. This ITAT order had confirmed the order of the Appellate Commissioner, which in turn had confirmed the order of the Assessing Officer. The appeal pertained to Assessment Year 2013-2014 and involved the Director of Technical Education (Respondent/Assessee). The Revenue sought to set aside the ITAT's order and confirm the Assessing Officer's order. The appeal was filed under Section 260-A of the Income Tax Act, 1961.

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 CBDT Circular No.17/2019 and Circular No.3/2018? (Question of law) The Revenue argued that a Circular No.17 of 2019, dated August 8, 2019, enhanced the monetary limit for filing appeals from Rs.50,00,000/- to Rs.1,00,00,000/-. They submitted that in light of this circular, the appeal may not be maintainable. The Revenue also referred to Clause 10 of Circular No.3 of 2018, which carves out exceptions, and stated that it was not possible at that stage to determine if the matter fell under any exception. They prayed for liberty to move the court for revival if an exception applied. The Revenue relied on Circular No.17/2019 and Circular No.3/2018. The Assessee's arguments are not recorded.

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.541/2016 BETWEEN:

1.

THE COMMISSIONER OF INCOME-TAX, TDS, NO.59, HMT BHAVAN, 4TH FLOOR, BALLARI ROAD, GANGANAGAR, BENGALURU - 560 032.

2.

THE ASST. COMMISSIONER OF INCOME-TAX TDS, CIRCLE-1 (1), NO.59, HMT BHAVAN, 4TH FLOOR, BALLARI ROAD, GANGANAGAR, BENGALURU - 560 032.

... APPELLANTS

(BY SRI.ARAVIND K.V. AND SRI.DILIP.M. ADVS.)

AND:

THE DIRECTOR OF TECHNICAL EDUCATION TECHNICAL EDUCATION BUILDING, OPP. MAHARANI COLLEGE, PALACE ROAD, BENGALURU - 560 001.

PAN: BLRDO 2314E

... RESPONDENT

(BY SRI.VIKRAM HUILGOL, HCGP )

THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:20/05/2016 PASSED IN ITA NO.1126/BANG/2015, FOR THE ASSESSMENT YEAR 2013-2014. PRAYING TO: 1. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE. 2. ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE ITAT, BENGALURU IN ITA NO.1126/BANG/2015 DATED:20/05/2016 CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE ASST. COMMISSIONER OF INCOME TAX, TDS, CIRCLE- 1(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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