COMMISSIONER OF INCOME TAX vs. M/S. PFX SALDANHA AND SONS

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ITA/37/2013HC KarnatakaKAHC01014853201309 April 2013Bench: B.MANOHAR,N.KUMAR5 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the tax effect in each individual assessment year must be considered. Merely because a common order was passed by the Tribunal for multiple years does not negate the benefit accrued to the assessee under the circular regarding tax effect.

What were the facts?

The Revenue filed appeals before the High Court, arguing that even though the tax effect in each assessment year was less than Rs. 10 Lakhs, the total tax effect across multiple years exceeded this limit. They contended that a common order was passed by the Tribunal for several assessment years.

What were the issues?

Whether the 'tax effect' for the purpose of appeal maintainability should be considered on a per-assessment year basis or aggregated across multiple years when a common order is passed by the Tribunal.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA, BANGALORE

DATED THIS THE 09TH DAY OF APRIL 2013

PRESENT:

THE HON'BLE MR.JUSTICE N.KUMAR

AND

THE HON'BLE MR.JUSTICE B.MANOHAR

Income Tax Appeal No.37/2013

Income Tax Appeal No.38/2013

Income Tax Appeal No.41/2013

Income Tax Appeal No.42/2013

BETWEEN:

1.

Commissioner of Income Tax (Appeals), Mysore.

2.

Income Tax Officer, Ward-2(2), Mangalore.

…..Common Appellants in all the four appeals

(By Sri E.I.Sanmathi, Advocate)

AND:

M/s. PFX Saldanha and Sons, D.No.17-21-1498, Highland Coffee Works, Falnir, Mangalore.

….Common Respondent in all the four appeals

-----

ITA No.37/2013 is filed under Section 260-A of I.T. Act, 1961, arising out of order dated 07.09.2012 passed in ITA No.796/Bang/2011, for the Assessment Year 2002-03, praying this Court to formulate the substantial questions of law stated therein, etc.

ITA No.38/2013 is filed under Section 260-A of I.T. Act, 1961, arising out of order dated 07.09.2012 passed in ITA No.797/Bang/2011, for the Assessment Year 2003-04, praying this Court to formulate the substantial questions of law stated therein, etc.

ITA No.41/2013 is filed under Section 260-A of I.T. Act, 1961, arising out of order dated 07.09.2012

3 passed in ITA No.8006/Bang/2011, for the Assessment Year 2006-07, praying this Court to formulate the substantial questions of law stated therein, etc.

ITA No.42/2013 is filed under Section 260-A of I.T. Act, 1961, arising out of order dated 07.09.2012 passed in ITA No.801/Bang/2011, for the Assessment Year 2007-08, praying this Court to formulate the substantial questions of law stated therein, etc.

These appeals coming on for Orders, this day, N.KUMAR, J., delivered the following:

J U D G M E N T

In all these appeals, admittedly, the “tax effect” is les than Rs.10 Lakhs in a particular assessment year.

2.

The Revenue submits, though the “tax effect” in each assessment year is less than Rs.10

4 Lakhs as the Tribunal has passed a common order in respect of several assessment years. If the tax payable for each assessment year is added, it exceeds Rs.10 Lakhs and therefore, Clause 5 of Instruction No.3 of 2011 is not attracted. It is submitted that this Court had already entertained an appeal in ITA No.324/2012, for the relevant assessment year the “tax effect” is more than Rs.10 Lakhs and therefore, the appeal be admitted.

3.

We do not see any merit in the said contention. Once the subject matter of these appeals, the “tax effect” is less than Rs.10 Lakhs, merely because a common order is passed by the Tribunal clubbing all these appeals, the benefits which are accrued to the assessee under the said Circular cannot be denied. In that view of the

5 matter, the office objection is sustained. Appeals are not maintainable and accordingly, dismissed.

Sd/- JUDGE

Sd/-

JUDGE

dh*

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