THE COMMISSIONER OF INCOME TAX vs. M/S U B NETWORKS (BANGALORE)

PDF · subscribers
ITA/1276/2006HC KarnatakaKAHC01058877200605 March 2013Bench: B.MANOHAR,N.KUMAR4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeals as not maintainable. This was based on a previous ruling that an instruction regarding tax effect less than Rs. 10,00,000/- applied to pending proceedings.

What were the facts?

The Revenue filed appeals challenging the ITAT's order which held that the assessee was not required to deduct tax at source under Section 195 of the IT Act. The tax effect involved was Rs. 8,04,354/- plus interest.

What were the issues?

The primary issue was the maintainability of the appeals due to the tax effect being below a certain threshold, as per a revenue instruction. The underlying issue of tax deduction at source under Section 195 was not adjudicated on merits.

Which sections of the Income-tax Act were involved?

Section 195

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BANGALORE

DATED THIS THE 05TH DAY OF MARCH 2013

PRESENT

THE HON'BLE MR.JUSTICE N.KUMAR

AND

THE HON'BLE MR. JUSTICE B.MANOHAR

ITA NO.1276/2006 c/w ITA NO.1277/2006

ITA NO.1276/2006

BETWEEN:

1.

THE COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE, C.R.BUILDING, QUEENS ROAD, BANGALORE.

2.

THE INCOME-TAX OFFICER, (TDS)– 1, C.R.BUILDING, QUEENS ROAD, BANGALORE.

…APPELLANTS

(BY SRI.K.V.ARAVIND, ADVOCATE)

AND:

M/S.U.B.NETWORKS (BANGALORE) PVT. LTD., 1/1, VITTAL MALLYA ROAD, BANGALORE – 560 001. …. RESPONDENT

(BY SRI.MALLAHA RAO FOR S.PARTHASARATHI, ADVS)

ITA FILED U/S.260A OF I.T.ACT, 1961 ARISING OUT OF ORDER DATED 30-12-2005 PASSED IN ITA.NO.317/BANG/2001 FOR THE ASSESSMENT YEAR 1999-2000, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT, BANGALORE IN ITA.NO.317/BANG/2001 DATED 30-12-2005 CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRMING THE ORDER PASSED BY THE INCOME TAX OFFICER, (TDS)1 BANGALORE, IN THE INTEREST OF JUSTICE AND EQUITY.

ITA NO.1277/2006

BETWEEN:

1.

THE COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE, C.R.BUILDING, QUEENS ROAD, BANGALORE.

2.

THE INCOME-TAX OFFICER, (TDS)– 1, C.R.BUILDING, QUEENS ROAD, BANGALORE.

…APPELLANTS

(BY SRI.K.V.ARAVIND, ADVOCATE)

AND:

M/S.U.B.NETWORKS (BANGALORE) PVT. LTD., 1/1, VITTAL MALLYA ROAD, BANGALORE – 560 001.

…. RESPONDENT

(BY SRI.MALLAHA RAO FOR S.PARTHASARATHI, ADVS)

ITA FILED U/S.260A OF I.T.ACT, 1961 ARISING OUT OF ORDER DATED 30-12-2005 PASSED IN ITA.NO.311/BANG/2001 FOR THE ASSESSMENT YEAR 1999-2000, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT, BANGALORE IN ITA.NO.311/BANG/2001 DATED 30-12-2005 CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRMING THE ORDER PASSED BY THE INCOME TAX OFFICER, (TDS)1 BANGALORE, IN THE INTEREST OF JUSTICE AND EQUITY.

THESE APPEALS ARE COMING ON FOR HEARING THIS DAY, N. KUMAR J., DELIVERED THE FOLLOWING:

J U D G M E N T

These appeals are filed by the revenue challenging the order passed by the Tribunal holding that the assessee was not required to deduct tax at source as per Section 195 of the IT Act.

2.

The tax effect involved in this appeal is Rs.8,04,354/- and interest amount of Rs.2,64,429/-. In view of the Instruction No.3/2011 dated 9.2.2011,

which fell for consideration before this court in the case of COMMISSIONER OF INCOME TAX v/s M/S. RANKA AND RANKA disposed of on 2nd November 2011 wherein it was held that the said instruction applies to the pending proceedings and if the tax effect is less than Rs.10,00,000/-, the appeal is not maintainable, these appeals are also not maintainable.

3.

Following the aforesaid decision, these appeals are dismissed as not maintainable. However, liberty is reserved to the revenue to seek for its revival if the judgment of this court is reversed by the Apex Court.

Sd/-

JUDGE

Sd/-

JUDGE

mpk/-*

More judgments on Section 195

All 2,836 judgments and leading authorities on Section 195 →

Recent GST High Court judgments

Search GST case law →