THE COMMISSIONER OF INCOME TAX vs. SMT K JAYALAKSHMI

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ITA/551/2013HC KarnatakaKAHC01053993201330 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. This decision was based on the submission by the Revenue regarding the applicability of Circular No. 17 of 2019, which increased the monetary limit for filing appeals. The court noted that the Revenue had also referred to exceptions carved out in Clause 10 of Circular No. 3 of 2018 and sought liberty to revive the appeal if the case fell within those exceptions. A communication from the CBDT dated August 20, 2019, was also brought to the court's notice, clarifying that the revised monetary limit applies to pending matters. Therefore, the appeal was allowed to be withdrawn with liberty granted to the appellant to seek revival.

What were the facts?

The appeal was filed by the Commissioner of Income Tax and the Assistant Commissioner of Income Tax (Revenue) against an order of the Income Tax Appellate Tribunal (ITAT), Bangalore, dated June 13, 2013. The ITAT had confirmed the order of the Appellate Commissioner, which in turn had confirmed the order of the Assessing Officer. The assessment year in question was 2009-2010. The appeal was filed under Section 260-A of the Income Tax Act, 1961. During the hearing, the Revenue 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 and sought permission to withdraw.

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in light of the revised monetary limits for filing appeals as per Circular No. 17 of 2019, issued by the CBDT, which superseded Circular No. 3 of 2018. (Question of law) Contentions: Assessee: Not recorded. Revenue: Submitted that the appeal is not maintainable due to the enhanced monetary limit in Circular No. 17 of 2019. Further, they referred to Clause 10 of Circular No. 3 of 2018, which carves out exceptions, and sought liberty to move the court for revival if the matter falls under any of those exceptions. The Revenue also drew attention to a CBDT communication dated August 20, 2019, clarifying that the new monetary limit is applicable 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 NO.551/2013 BETWEEN:

1.

THE COMMISSIONER OF INCOME TAX PARK VIEW BUILDING, NO.284/1, 4TH MAIN, P J EXTENSION, DAVANAGERE-577 002

2.

THE ASST. COMMISSIONER OF INCOME TAX CIRLCE-1, NO.70, 100 FEET ROAD, GOPALAGOWDA EXTENSION, SHIMOGA-577 201

...APPELLANTS

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

AND:

SMT. K. JAYALAKSHMI PROPRX., SRI KRISHNA TRANSPORT & SNEHA ENTERPRISES, SAVAKAR NAGAR,B H ROAD, SHIMOGA

... RESPONDENT

(BY SMT. JINITA CHATTERJEE AND SRI. S. PARTHASARATHI, ADVOCATES)

THIS ITA IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 13/06/2013 PASSED IN ITA NO. 1036/BANG/2012, FOR THE ASSESSMENT YEAR 2009-2010, PRAYING TO 1. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE. 2. ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE ITAT, BANGALORE IN ITA NO.1036/BANG/2012 DATED:13/06/2013 CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-1, SHIMOGA.

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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