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

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ITA/543/2016HC KarnatakaKAHC01050268201604 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. The reasoning was based on the revised monetary limits for filing appeals, as stipulated in Circular No. 17 of 2019, which increased the threshold from Rs. 50,00,000/- to Rs. 1,00,00,000/-. The Court noted that this circular, as clarified by a CBDT communication dated August 20, 2019, is applicable to pending matters. The Revenue had submitted that the appeal was not maintainable under the revised limits and sought withdrawal. The Court granted liberty to the appellant to seek revival of the appeal if it is subsequently found that the matter falls within the exceptions provided in Clause 10 of Circular No. 3 of 2018. No decision was made on the merits of the case.

What were the facts?

The appeal was filed by the Commissioner of Income-Tax, TDS, and the Assistant Commissioner of Income-Tax, TDS, against an order of the Income-Tax Appellate Tribunal (ITAT), Bengaluru, dated May 20, 2016. The ITAT's order had confirmed the order of the Appellate Commissioner, which in turn had presumably set aside the order of the Assessing Officer. The assessment year in question was 2014-2015. The appeal was filed under Section 260-A of the Income Tax Act, 1961. The Revenue sought to formulate substantial questions of law and set aside the ITAT's order.

What were the issues?

1. Whether the appeal is maintainable in light of the revised monetary limits for filing appeals by the Revenue before the High Courts, as stipulated in Circular No. 17 of 2019. Assessee (Revenue) Contentions: The learned counsel for the appellant-Revenue submitted that the appeal is not maintainable due to the enhancement of the monetary limit for filing appeals from Rs. 50,00,000/- to Rs. 1,00,00,000/- as per Circular No. 17 of 2019, amending Circular No. 3 of 2018. The Revenue requested permission to withdraw the appeal. They also sought liberty to move the court for revival if the matter falls under the exceptions carved out in Clause 10 of Circular No. 3 of 2018. 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 that the revised monetary limit applies to pending matters. Respondent (Assessee) Contentions: No specific contentions were recorded for the respondent.

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.543/2016 BETWEEN:

1.

THE COMMISSIONER OF INCOME-TAX, TDS, NO.59, HMT BHAVAN, 4TH FLOOR, BALLARI ROAD, GANGANAGAR, BANGALORE-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 K.V.ARAVIND & 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 ITA IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:20/05/2016 PASSED IN ITA

NO.1127/BANG/2015, FOR THE ASSESSMENT YEAR 2014-2015. 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. 1127/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.

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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