What did the High Court hold?

The High Court, following the CBDT circular, held that appeals with a tax effect below the specified limit should be withdrawn or not pressed. Consequently, the present appeal was dismissed.

The Revenue filed an appeal before the High Court. The appeal's tax effect was below the enhanced monetary limit for filing appeals. This enhancement was due to a circular issued by the Central Board of Direct Taxes.

What were the issues?

Whether the appeal filed by the Revenue should be dismissed based on a new circular enhancing the monetary limit for filing appeals, as the tax effect was below the revised limit.

CIT vs M/S Asea Brown Boveri Ltd | Karnataka High Court 2015

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 17TH DAY OF DECEMBER, 2015

PRESENT

THE HON'BLE MR. JUSTICE VINEET SARAN

AND

THE HON’BLE MRS. JUSTICE S.SUJATHA

ITA No. 2/2011

BETWEEN

THE COMMISSIONER OF INCOME TAX, C.R.BUIDLNG, QUEENS ROAD, BANGALORE.

THE DEPUTY COMMISSIONER OF INCOMET TAX, SPECIAL RANGE-1, MUMBAI.

THE ADDITIONAL COMMISSIONER OF INCOME TAX-LTU, BANGALORE.

...APPELLANTS

(BY SRI. K.V. ARAVIND & MS. PREETHI.J.D.-ADVs)

AND

M/S ASEA BROWN BOVERI LTD., KHANIJA BHAVAN, 2ND FLOOR, EAST WING, RACE COURSE ROAD, BANGLAORE-560 001.

... RESPONDENT

(BY SRI. T. SURYANARAYANA FOR KING & PARTRIDGE-ADV)

THIS ITA IS FILED UNDER SECTION 260A OF INCOME TAX ACT, 1961, PRAYING TO SET ASIDE THE ORDERS PASSED BY THE ITAT, BANGALORE IN ITA NO.6786/MUM/2002 DATED: 27.08.2010, ETC.

THIS ITA COMING ON FOR HEARING THIS DAY, VINEET SARAN J., DELIVERED THE FOLLOWING:

JUDGMENT

Learned counsel for the appellants-Revenue has placed before us a recent Circular No.21/2015 dated 10.12.2015, issued by the Central Board of Direct taxes, wherein the monetary limit of the tax effect for filing appeals before the High Court has been enhanced from Rs.10 lacs to Rs.20 lacs. In paragraph-10 of the said Circular, it has been clarified that the same will apply retrospectively to pending appeals also, which, if below the specified tax limits, may be withdrawn/not pressed.

Learned counsel for the appellants has stated that the tax effect in the present appeal is below the specified limit of Rs.20 lacs.

Accordingly, in view of the Circular No.21/2015 dated 10.12.2015, the tax effect in this appeal being less than Rs.20 lacs, the appeal stands dismissed.

Sd/-

JUDGE

Sd/-

JUDGE TL

THE COMMISSIONER OF INCOME TAX vs. M/S ASEA BROWN BOVERI LTD

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