PR COMMISSIONER OF INCOME TAX-5 vs. M/S NET SCOUT SYSTEMS

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ITA/610/2017HC KarnatakaKAHC01039959201720 November 2020Bench: ALOK ARADHE,H.T. NARENDRA PRASAD3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court disposed of the appeal, granting liberty to the revenue to revive it if the case falls within the exceptions of the CBDT circular. The court acknowledged the binding nature of the circular on the revenue.

What were the facts?

The Revenue filed an appeal before the High Court against an ITAT order. The assessee's counsel argued that the tax effect was below the threshold specified in CBDT Circular No. 17/2019, making the appeal non-maintainable.

What were the issues?

Whether the appeal filed by the revenue is maintainable in light of the CBDT circular regarding tax effect. Whether the CBDT circular binds the revenue.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF NOVEMBER 2020 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE H.T.NARENDRA PRASAD I.T.A. NO.610 OF 2017 BETWEEN: 1. PR. COMMISSIONER OF INCOME TAX-5

BMTC COMPLEX, KORMANGALA

BANGALORE. 2. THE DY. COMMISSIONER OF INCOME TAX

CIRCLE 12(2), BMTC COMPLEX

KORMANGALA, BANGALORE. ... APPELLANTS (BY SRI. E.I. SANMATHI, ADV.) AND: M/S. NET SCOUT SYSTEMS SOFTWARE INDIA P. LTD., (FORMERLY KNOWN AS NETWORK GENERAL SOFTWARE INDIA PVT. LTD) EMBASSY ICON, GROUND FLOOR NO.3, INFANTRY ROAD, BANGALORE-01 PAN: AAICS0944E. ... RESPONDENT (BY SMT. SHREYA, ADV., FOR SRI. MALLAHARAO K, ADV., FOR SRI. NAGESWAR RAO, ADV.,) - - -

2 THIS I.T.A. IS FILED UNDER SECTION 260-A OF I.T.ACT, 1961, ARISING OUT OF ORDER DATED 15-02-2017 PASSED IN ITA NO.1479/BANG/2010, FOR THE ASSESSMENT YEAR 2006-07, PRAYING TO: I. 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 APPELLATE ORDER DATED 15-02-2017 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, 'A' BENCH, BENGALURU AS SOUGHT FOR IN THE RESPONDENT-ASSESSEE'S CASE, IN APPEAL PROCEEDINGS IN ITA NO.1479/BANG/2010 FOR AY 2006-07 & GRANT SUCH OTHER RELIEF AS DEEMED FIT, IN THE INTEREST OF JUSTICE. THIS I.T.A. COMING ON FOR HEARING, THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING: JUDGMENT Mr.E.I.Sanmathi, learned counsel for the revenue. Smt.Shreya, learned counsel for Mr.Mallaharao K., 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

3 Board of Direct Taxes. It is also submitted that the aforesaid Circular binds the revenue. 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

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