What did the High Court hold?

The High Court dismissed the appeal as not maintainable because the penalty amount was below the monetary limit prescribed by departmental instructions for filing appeals. This decision was based on a previous ruling by the same court.

The Revenue filed an appeal against an ITAT order that granted benefits to the assessee, involving a penalty of Rs. 6,33,000. The appeal was filed under Section 260A of the IT Act.

What were the issues?

The primary issue was whether the appeal was maintainable given the monetary limit for filing appeals to the High Court, as per departmental instructions.

CIT vs M/S Sanu Family Trust | Karnataka High Court 2013

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:

The Commissioner of

Income Tax

C.R. Building, Attavara

Mangalore

The Addl. Commissioner of

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

ksp/-

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

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