THE COMMISSIONER OF INCOME TAX vs. M/S SANU FAMILY TRUST

IN THE HIGH COURT OF KARNATAKA AT BANGALORE

Dated this the 26th day of November 2013 PRESENT

THE HON’BLE MR. JUSTICE N KUMAR

AND

THE HON’BLE MRS. JUSTICE RATHNAKALA

ITA No. 577 of 2007

BETWEEN:

Income Tax

C.R. Building, Attavara

Mangalore

Income Tax

Range-1

Mangalore

…Appellants

(By Sri K.V. Aravind, Advocate)

AND:

M/s. Sanu Family Trust Sanu Palace

2 Kodialbail Mangalore

…Respondent

(By Sri A. Shankar & Sri M. Lava, Advocates)

This ITA filed U/s. 260A of I.T. Act, 1961 arising out of order dated 28-02-2007 passed in ITA No.360/Bang/2004 for the Assessment period 1997-1998 praying to (i) formulate the substantial questions of law stated therein; (ii) allow the appeal and set aside the order passed by ITAT, Bangalore Bench in ITA No.360/Bang/2004 dated 28-02-2007 and confirm the order passed by the Assessing Authority.

This ITA coming on for hearing this day, N. KUMAR J., delivered the following:

J U D G M E N T

This is an appeal filed by the revenue challenging the order passed by the Tribunal granting benefit to the assessee. The penalty in this appeal is Rs.6,33,000-00 In view of instruction No. 3/2011 issued by the Department prescribing Rs.10,00,000/- as the limit for filing appeals to this Court, which this Court in the case of THE COMMISSIONER OF INCOME TAX AND ANOTHER Vs. M/S RANKA AND RANKA

3 reported in 2012(72) DTR (Kar) 270, has held to be retrospective and applicable to pending appeals. The appeal is dismissed as not maintainable only on the ground of the subject matter being within the monetary limit prescribed and without going into any other question.

However, it is submitted that the Revenue has preferred an appeal against the order of this Court before the Apex Court. Hence, in the event of the Apex Court reversing the said judgment, liberty is reserved to the Revenue to seek for revival of this appeal.

The appeal is dismissed.

Sd/- JUDGE

Sd/- JUDGE

ksp/-