THE COMMISSIONER OF INCOME TAX vs. M/S ADEEP LOCKS LTD
What did the High Court hold?
The High Court dismissed the appeal based on Circular No. 2 of 2005, which sets a monetary limit of Rs. 4,00,000/- for preferring appeals to the High Court. This circular has statutory effect under Section 268A of the Act.
What were the facts?
The Revenue appealed against an ITAT order that allowed expenditure for ESI contributions and excluded sales tax and excise duty from total turnover for Section 80HHC deduction. The net tax effect was Rs. 1,29,877/-.
What were the issues?
The primary issue was the maintainability of the appeal due to its low monetary value, as per the Revenue's own circular. The substantive issues regarding ESI contributions and the calculation of turnover for Section 80HHC were not adjudicated.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
- 1 - IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE 28TH DAY OF OCTOBER 2013
PRESENT
THE HON’BLE MR.JUSTICE N.KUMAR
AND
THE HON’BLE MRS.JUSTICE RATHNAKALA
INCOME TAX APPEAL NO.150 OF 2007
BETWEEN:
The Commissioner of Income-Tax, Central Circle, C.R. Building, Queens Road, Bangalore.
The Deputy Commissioner of Income-Tax Circle – 11(1), C. R Building, Queens Road, Bangalore.
.. APPELLANTS
(By Sri K. V. Aravind, Adv.)
AND:
M/s. Adeep Locks Ltd., 12-C, KIADB Indl. Area, Attibele, Anekal Tq. Bangalore.
..RESPONDENT
(By Sri K. MallaRao, Adv. For Sri S. Parthasarathi, Adv.)
This appeal is filed under Section 260-A of I.T. Act 1961, arising out of Order dated 16-06-2006 passed in ITA No.
- 2 - 3375/Bang/2004, for the Assessment Year 2001-02, praying that this Hon'ble Court may be pleased to:
i. formulate the substantial questions of law stated therein,
ii. allow the appeal and set aside the order passed by the ITAT, Bangalore in ITA No.3375/Bang/2004 dated 16-06- 2006 confirming the order of the Appellate Commissioner confirm the order passed by the Dy., Commissioner of Income Tax, Circle-11(1), Bangalore, in the interest of justice and equity.
This Appeal coming on for Hearing this day, KUMAR J., delivered the following:
J U D G M E N T
This appeal is preferred by the Revenue against the order passed by the Tribunal, which has allowed the expenditure of contribution to E.S.I. and excluded the sales tax and excise duty from total turnover for computing deduction under Section 80HHC of the Income Tax Act (for short ‘the Act’). The net tax effect on the amount involved in this appeal is Rs.1,29,877/-.
In view of the Circular No.2 of 2005 where the monetary limit of Rs.4,00,000/- is prescribed for preferring an appeal to the High Court, which has the statutory effect in view of Section 268A of the Act, this appeal is not maintainable on that ground.
- 3 -
Appeal is dismissed.
Sd/-
JUDGE
Sd/-
JUDGE
KNM/-
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