THE COMMISSIONER OF INCOME-TAX vs SRI.RAJESH KUMAR KEDIA (HUF)

1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE

DATED THIS THE 08TH DAY OF NOVEMBER, 2012 PRESENT THE HON’BLE MR.JUSTICE K. SREEDHAR RAO AND

THE HON’BLE MR.JUSTICE B.V.PINTO

INCOME-TAX APPEAL NO.367/2007

BETWEEN

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

BANGALORE

THE INCOME TAX OFFICER WARD-5(1) C.R.BUILDING QUEENS ROAD BANGALORE

... APPELLANTS

(BY SRI. K V ARAVIND, ADV.) AND

SRI.RAJESH KUMAR KEDIA (HUF) SRI. SATYA BUILDING VENKATARAYAPPA LANE J.M.ROAD CROSS BANGALORE

... RESPONDENT

(BY SRI.S.PARTHASARATHI, ADV.)

2 THIS ITA IS FILED U/S.260-A OF I.T.ACT 1961 ARISING OUT OF ORDER DATED 03-11-2006 PASSED IN ITA NO.2792/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.2972/BANG/2004 DATED 03-11-2006, CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE INCOME TAX OFFICER, WARD-5(1), BANGALORE, IN THE INTEREST OF JUSTICE AND EQUITY.

THIS ITA IS COMING ON FOR FINAL HEARING THIS DAY, SREEDHAR RAO J., DELIVERED THE FOLLOWING:-

J U D G M E N T

Sri S.Parthasarathi, learned Counsel takes notice for the respondent.

The mandatory limit in this appeal is less than Rs.10 lakhs. This Court in the case of CIT Vs. RANKA AND RANKA in 72 DTR 270 (KAR), has held that the Circular No.3/2011 which prescribes the mandatory limits of Rs.10 lakhs for filing appeal by the Revenue applies to pending appeal and also has prospective

3 effect. Thus, rejected the contention of the Revenue on the ground that the said Circular has only prospective effect and does not apply to pending appeals. The Revenue has preferred SLP before the Supreme Court in SLP No.27468/2012 pending decision. In view of the decision of the Court in Ranka and Ranka case, the appeal is to be dismissed on the ground of mandatory limit. If the Revenue succeeds in the SLP pending before the Supreme Court, the appellants are at liberty to make an application for revival of the appeal for disposal on merits. Accordingly, the appeal is disposed of.

Sd/- JUDGE

nvj

THE COMMISSIONER OF INCOME-TAX vs. SRI.RAJESH KUMAR KEDIA (HUF)