M/S MAHARASHTRA APEX CORPORATION LIMITED vs. THE DEPUTY COMMISSIONER OF INCOME TAX

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ITA/7/2022HC KarnatakaKAHC01041012202114 March 2022Bench: S.SUJATHA,SHIVASHANKAR AMARANNAVAR3 pages
AI SummaryAllowed

What did the High Court hold?

The High Court agreed with the Revenue's submission that the previous order was based on a misinterpretation of the tax effect bar. Consequently, the review petition was allowed.

What were the facts?

The Revenue filed a review petition challenging a previous order that dismissed an appeal due to a low tax effect. The Revenue pointed out an Office Memorandum that clarified the applicability of such bars.

What were the issues?

Whether the previous order correctly applied the tax effect bar for dismissing the appeal, considering the relevant Office Memorandum.

Which sections of the Income-tax Act were involved?

Section 114

AI-generated summary — verify with the full judgment below

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NC: 2023:KHC:42602-DB RP No. 7 of 2022

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF NOVEMBER, 2023 PRESENT THE HON'BLE MR. JUSTICE P.S.DINESH KUMAR AND THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM REVIEW PETITION NO. 7 OF 2022 BETWEEN :

1.

PR. COMMISSIONER OF INCOME TAX-7, BMTC COMPLEX KORAMANGALA BANGALORE 2. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-7(1)(2), BMTC COMPLEX KORAMANGALA BENGALURU …PETITIONERS

(BY SHRI. E.I. SANMATHI, STANDING COUNSEL) [THROUGH VIDEO CONFERENCE] AND :

LAXMIPAT DUDHERIA (HUF) NO.66, NAVNIKETAN K.R.ROAD, BASAVANGUDI BENGALURU -4 PAN. AJTPJ9834 B …RESPONDENT

(BY SHRI. DAN D’SILVA FOR SHRI. K.R. PRADEEP, ADVOCATES) . . . .

THIS REVIEW PETITION IS FILED UNDER ORDER 47 RULE 1 AND 2 R/W SECTION 114 OF CPC, PRAYING TO REVIEW THE JUDGMENT DATED 18.08.2021 PASSED IN ITA NO.223/2020 AND TO PASS SUITABLE

Digitally signed by YASHODHA N Location: HIGH COURT OF KARNATAKA

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NC: 2023:KHC:42602-DB RP No. 7 of 2022

ORDERS THAT THIS HON'BLE COURT DEEMS FIT TO BE GRANTED IN THE FACTS AND CIRCUMSTANCES OF THE CASE IN THE INTEREST OF JUSTICE AND EQUITY.

THIS REVIEW PETITION, COMING ON FOR ADMISSION, THIS DAY, P.S.DINESH KUMAR J., MADE THE FOLLOWING:

ORDER

Heard Shri. E.I. Sanmathi, learned Standing Counsel for the petitioners and Shri. Dan D’Silva, learned Advocate for the respondent.

2.

Shri. Sanmathi, adverting to Annexure – C (Office Memorandum dated 16.09.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes) pointed out that the order impugned in this review petition has been dismissed on the ground that the tax effect is less than Rupees One Crore and the said bar does not apply to the instant case.

3.

We have perused the Circular. Shri. Sanmathi is right in his submission. Therefore, this review petition merits consideration. Hence, the following:

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NC: 2023:KHC:42602-DB RP No. 7 of 2022

ORDER (a) Review petition is allowed. (b) ITA No.223/2020 is restored on Board and Registry shall place it before the roster Bench. No costs.

Sd/- JUDGE

Sd/- JUDGE

SPS List No.: 1 Sl No.: 2

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