COMMISSIONER OF INCOME TAX vs. SRI.M.R.PADMAVATHY TRUST

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WTA/10/2015HC KarnatakaKAHC01039297201529 January 2020Bench: ARAVIND KUMAR,E.S.INDIRESH4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court rejected the Revenue's contention that Circular No.17/2019 is prospective and not applicable to pending matters. The Court relied on the decision of a Coordinate Bench in COMMISSIONER OF INCOME TAX & ANOTHER V/S RANKA & RANKA (2013) 352 ITR 121 (KARN), which held that CBDT circulars apply to pending proceedings. This was further affirmed by the Apex Court in DIRECTOR OF INCOME TAX V/S S.R.M.B DAIRY FARMING (P) LTD. (2018) 400 ITR 9 (SC). The Court also noted that CBDT Instruction No.F.No.279/MISC/M-93/2018-ITJ dated 20.08.2019 explicitly stated that Circular No.17/2019 would be applicable to all pending SLPs/appeals/cross objections/references. Consequently, the appeal was dismissed as not maintainable in view of the monetary limits prescribed by the circular, aligning with the order in WTA No.26/2017.

What were the facts?

The appeal was filed by the Commissioner of Income Tax and the Assistant Commissioner of Wealth Tax against an order dated 31.03.2015 passed by the Income Tax Appellate Tribunal (ITAT) in C.O.No.86/BANG/2014, arising from WTA No.16/BANG/2014 for the assessment year 2005-2006. This order was a common order passed in multiple appeals and cross-objections before the ITAT. The appellants sought to set aside the ITAT's order. The High Court noted that a Coordinate Bench had previously dismissed a similar appeal (WTA No.26/2017) on 24.10.2019, citing monetary limits fixed by Circular No.17/2019 dated 08.08.2019.

What were the issues?

1. Whether Circular No.17/2019, which sets monetary limits for filing appeals, is prospective and cannot be applied to pending matters. The Revenue contended that Circular No.17/2019 is prospective and not applicable to pending matters. The Revenue relied on the argument that the circular cannot be made applicable to matters already pending before the courts. The Assessee did not present any arguments as recorded in the judgment. The High Court, however, considered the applicability of the circular to pending proceedings.

Which sections of the Income-tax Act were involved?

27-A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF JANUARY, 2020 PRESENT THE HON’BLE MR. JUSTICE ARAVIND KUMAR AND THE HON’BLE MR. JUSTICE E.S.INDIRESH WEALTH TAX APPEAL NO.10 OF 2015 BETWEEN:

1.

COMMISSIONER OF INCOME TAX

C.R.BUILDING, QUEENS ROAD,

BENGALURU – 560 001.

2.

THE ASSISTANT COMMISSIONER

OF WEALTH TAX,

CIRCLE 6(1),

BENGALURU.

... APPELLANTS (BY SRI. E.I.SANMATHI, ADVOCATE)

AND:

SRI.M.R.PADMAVATHY TRUST GOKULA HOUSE, GOKULA, MATHIKERE, BENGALURU. ... RESPONDENT

(BY SRI.A.SHANKAR, SR.COUNSEL FOR SRI. M.LAVA, ADVOCATE)

THIS APPEAL FILED UNDER SECTION 27-A OF WEALTH TAX ACT 1957, ARISING OUT OF ORDER DATED 31.03.2015 PASSED IN C.O.NO.86/BANG/2014 IN WTA NO.16/BANG/2014, FOR THE ASSESSMENT YEAR 2005- 2006, PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW AND / OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON’BLE COURT AS DEEMED FIT AND SET ASIDE THE ORDER DATED 31.03.2015 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, ‘A’ BENCH, BENGALURU IN APPEAL PROCEEDINGS IN C.O.NO.86/BANG/2014 IN WTA NO.16/BANG/2014 FOR THE ASSESSMENT YEAR 2005- 2006.

THIS APPEAL COMING ON FOR ORDERS THIS DAY, ARAVIND KUMAR J., DELIVERED THE FOLLOWING:

JUDGMENT This appeal is directed against the order dated 31.03.2015 passed by the Income Tax Appellate Tribunal in WTA No.16/Bang/2014. Said order is a common order passed in WTA Nos.16 to 29/Bang/2014 and CO Nos.86 to 97/Bang/2014.

2.

Under similar circumstances, Coordinate Bench in WTA No.26/2017 by order dated 24.10.2019 dismissed the said appeal on monetary limits fixed in terms of Circular No.17/2019 dated 08.08.2019.

3.

However, learned counsel appearing for Revenue would contend that said Circular is prospective and cannot be made applicable to the pending matters, which we are not inclined to accept in the light of law laid down by Coordinate Bench of this Court in the case of COMMISSIONER OF INCOME TAX & ANOTHER V/S RANKA & RANKA reported in (2013) 352 ITR 121 (KARN), wherein it has been held that scope of Circular issued by Central Board of Direct Taxes would be applicable to the pending proceedings, which also came to be affirmed by Apex Court in the case DIRECTOR OF INCOME TAX V/S S.R.M.B DAIRY FARMING (P) LTD. reported in (2018) 400 ITR 9 (SC) vide paragraph 23. In fact, Central Board of Direct Taxes has also issued an instruction bearing No.F.No.279/MISC/M-93/2018-ITJ dated 20.08.2019 intimating all the Principal Chief Commissioners of Income Tax that Circular No.17/2019 would be applicable on all pending SLPs/appeals/cross

objections/references. Hence, contention of learned counsel Sri.E.I.Sanmathi stands rejected.

4.

In the light of aforesaid facts, the present appeal as already noticed herein above, being an off shoot of common order passed by ITAT, this appeal also deserves to be dismissed. Accordingly, appeal stands dismissed as not maintainable in view of aforestated order passed in WTA No.26/2017 dated 24.10.2019.

All pending interlocutory applications, if any, shall stand consigned to records.

SD/- JUDGE

SD/-

JUDGE

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