THE PR. COMMISSIONER OF INCOME-TAX, vs. SHRI. M.G. MOHAN KUMAR

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ITA/639/2016HC KarnatakaKAHC01054250201630 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 court noted the submission by the Revenue's counsel regarding Circular No. 17 of 2019, which enhanced the monetary limit for filing appeals to Rs. 1 crore. The counsel also highlighted that this revised limit is applicable to pending matters, as clarified by the CBDT. The court granted liberty 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 appeal was filed by the Principal Commissioner of Income-Tax and the Deputy Commissioner of Income-Tax (appellants) against an order dated July 22, 2016, passed by the Income-Tax Appellate Tribunal (ITAT) in ITA No. 981/BANG/2010, for the assessment year 2007-2008. The respondent is Shri. M.G. Mohan Kumar. The appellants sought to set aside the ITAT's order and confirm the orders of the Appellate Commissioner and the Deputy Commissioner of Income-Tax. During the hearing, the learned counsel for the appellant-Revenue brought to the court's notice Circular No. 17 of 2019, which enhanced the monetary limit for filing appeals. The counsel submitted that the appeal might not be maintainable due to this revised limit and sought permission to withdraw the appeal, reserving liberty to revive it if the matter falls under exceptions mentioned in Circular No. 3 of 2018.

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is maintainable in light of the revised monetary limits for filing appeals as per Circular No. 17 of 2019, which superseded Circular No. 3 of 2018. Assessee's Contention: The assessee did not make any arguments as the appeal was withdrawn by the Revenue. Revenue's Contention: The Revenue contended that the appeal may not be maintainable due to the revised monetary limit of Rs. 1 crore, as per Circular No. 17 of 2019. They also referred to Clause 10 of Circular No. 3 of 2018, which carves out certain exceptions, and submitted that it was not possible at that stage to determine if the matter fell under these exceptions. Therefore, they prayed for liberty to move the court for revival if the exceptions applied. The Revenue also clarified that the revised monetary limit is applicable to pending matters, citing a CBDT communication dated August 20, 2019.

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.639/2016 BETWEEN:

1.

THE PR. COMMISSIONER OF INCOME-TAX, 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU 560 095.

2.

THE DEPTUY COMMISSIOENR O INCOME-TAX CIRCLE-5(1), PRESENT ADDRESS CIRCLE-2(3)(1), 2ND FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU-560 095. ... APPELLANTS

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

AND:

SHRI. M.G. MOHAN KUMAR FLAT NO.15, SRI RANGA APARTMENTS, 30, TEMPLE ROAD, MALLESWARAM, BENGALURU-560 003. PAN: ADVPM 5755E

... RESPONDENT

(BY SRI. M LAVA, ADVOCATE)

THIS ITA IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:22/07/2016 PASSED IN ITA NO.981/BANG/2010, FOR THE ASSESSMENT YEAR 2007-2008,

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. 981/BANG/2010 DATED: 22/07/2016 AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2(3)(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

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