THE COMMISSIONER OF INCOME TAX vs. M/S MANTHAN SOFTWARE SERVICES PVT LTD

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF DECEMBER 2020 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE H.T.NARENDRA PRASAD I.T.A. NO.95 OF 2020 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX

INTERNATIONAL TAXATION

7TH FLOOR, BMTC BUILDING

80 FEET ROAD, KORAMANGALA

BENGALURU-560095. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX

INTERNATIONAL TAXATION

CIRCLE-1(2), 7TH FLOOR

BMTC BUILDING, 80 FEET ROAD

KORAMANGALA, BENGALURU-560095. .... APPELLANTS (BY SRI. ARAVIND K.V. ADV.,) AND: M/S. MANTHAN SOFTWARE SERVICES PVT. LTD., NO.40/4, LAVELLE ROAD BENGALURU-560001 PAN AADCM 7750 M. ... RESPONDENT (BY SRI. NARENDRA KUMAR J. JAIN, ADV.,) - - -

2 THIS I.T.A. IS FILED UNDER SEC. 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 28.08.2019 PASSED IN IT(IT)A NO.968/BANG/2019 FOR THE ASSESSMENT YEAR 2012-13, PRAYING TO: (i) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE. (ii) ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN IT(IT)A NO.968/BANG/2019 DATED 28.08.2019 FOR ASSESSMENT YEAR 2012-13, ANNEXURE-C CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIOAL TAXATION, CIRCLE-1(2), BENGALURU & ETC. THIS I.T.A. COMING ON FOR FURTHER ORDERS, THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING: JUDGMENT Mr.K.V.Aravind, learned counsel for the revenue. Mr.Narendra Kumar J.Jain, learned counsel for the assessee. 2. Learned counsel for the assessee submits that the tax effect in this appeal is less than Rs.1 Crore and therefore, the appeal should not be entertained at the instance of the revenue in view of the Circular No.17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes. It is also submitted that the aforesaid Circular binds the revenue.

3 3. On the other hand, learned counsel for the revenue submits that he be granted liberty to revive the appeal in case the matter falls within the exceptions under the aforesaid Circular dated 08.08.2019. 4. In view of the aforesaid submissions, the appeal is disposed of with liberty as prayed for by the learned counsel for the revenue. Sd/- JUDGE Sd/- JUDGE RV