What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. This was based on a circular that increased the monetary limit for filing appeals to the High Court. The tax effect in the present appeal was below this new limit.

The Revenue filed an appeal before the High Court. The tax effect in the appeal 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 due to the tax effect being below the enhanced monetary limit prescribed by a CBDT circular.

CIT vs Shri Himachalapathi | 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. 289/2012

BETWEEN

COMMISSIONER OF INCOME TAX, (APPEALS)-III, BANGALORE.

THE INCOME TAX OFFICER, WARD-6(1), 4TH FLOOR, RASTROTHANNA BHAVAN, OPP: RBI, NRUPATUNGA ROAD, BANGALORE-560001. …APPELLANTS

(BY SRI.E.I.SANMATHI-ADV)

AND

SHRI. HIMACHALAPATHI, NEAR VENKATALA, B.B.ROAD, HUNASMARAHALLI, YELAHANKA, BANGALORE. ... RESPONDENT

(BY SRI.A.SHANKAR & SRI.M.LAVA-ADV)

THIS ITA IS FILED UNDER SECTION 260A OF INCOME TAX ACT, 1961, PRAYING TO SET ASIDE THE APPELLATE ORDER DATED 31.1.2012 PASSED BY THE ITAT, ‘A’ BENCH, BANGALORE IN APPEAL PROCEEDINGS ITA NO.1346/BANG/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that the same will apply retrospectively to pending appeals also, which, if below the specified tax limits, may be withdrawn/not pressed.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

COMMISSIONER OF INCOME TAX vs. SHRI HIMACHALAPATHI

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