RYATAR SAHAKARI vs. PRINCIPAL COMMISSIONER OF INCOME TAX,

1 IN THE HIGH COURT OF KARNATAKA KALABURAGI BENCH DATED THIS THE 27TH DAY OF MARCH 2018 PRESENT THE HON’BLE Dr. JUSTICE VINEET KOTHARI AND THE HON’BLE MR. JUSTICE R. DEVDAS INCOME TAX APPEAL No.100036/2016 C/W INCOME TAX APPEAL No.100035/2016 ITA No.100036/2016: Between: 1. The Principal Commissioner of Income Tax Dr. B.R. Ambedkar Veedhi, Belagavi 2. The Income Tax Officer Ward-2, Bijapur … Appellants (By Sri Ameet Kumar Deshpande, Advocate) And: Shri Revansiddeshwar Co-operative Credit Society Main Road, Horti, Indi Taluk Bijapur District – 586 209 PAN: AABAS 3319N … Respondent (By Sri G.B. Yadav, Advocate)

Date of order: 27.03.2018 ITA No.100036/2016 C/W ITA No.100035/2016 The Principal Commissioner of Income Tax Vs Shri Revansiddeshwar Co-operative Credit Society 2 This Income Tax Appeal is filed under Section 260A of the Income Tax Act, 1961, praying to formulate the substantial questions of law stated above and allow the appeal and set aside the orders passed by the Income Tax Appellate Tribunal, Bangalore Bench “A” Bangalore in ITA No.843(B)/2014 Dtd. 31.08.2015 and confirm the order passed by the Income Tax Officer, Ward-1, Gokak. ITA No.100035/2016: Between: 1. The Principal Commissioner of Income Tax Dr. B.R. Ambedkar Road, Belagavi 2. The Income Tax Officer Ward-2, Vijayapur … Appellants (By Sri Ameet Kumar Deshpande, Advocate) And: M/s Basavan Bagewadi Taluka Primary teachers Co-Operative Society Basavan Bagewadi – 586 203 PAN: AAAAB5594K … Respondent (By Sri G.B. Yadav, Advocate) This Income Tax Appeal is filed under Section 260A of the Income Tax Act, praying to formulate the substantial questions of law stated above and allow the appeal and set aside the orders passed by the Income Tax Appellate Tribunal, Bangalore Bench “C” Bangalore in ITA No.1503/BANG/2014 Dtd. 30.07.2015 and confirm the order passed by the Income Tax Officer, Ward-2, Vijayapur.

Date of order: 27.03.2018 ITA No.100036/2016 C/W ITA No.100035/2016 The Principal Commissioner of Income Tax Vs Shri Revansiddeshwar Co-operative Credit Society 3 These appeals coming on for admission this day, VINEET KOTHARI J., delivered the following: J U D G M E N T Mr. Ameet Kumar Deshpande, Advocate for Appellant- Revenue Mr. G.B. Yadav, Advocate for Respondent-Assessee 1. Both these appeals are filed by the Revenue against the Assessee for Assessment Year 2010-2011 and 2011-2012 respectively. The Income Tax Appellate Tribunal had decided both the Income Tax Appeals filed by the assessee in ITA No.843(B)/2014 and by the Revenue in ITA No.1503/Bang/2014 allowing the appeal of the assessee vide order dated 31.08.2015 and dismissing the appeal of the Revenue vide order dated 30.07.2015. 2. The two issues arising in these appeals were about the deletion of the additions made by

Date of order: 27.03.2018 ITA No.100036/2016 C/W ITA No.100035/2016 The Principal Commissioner of Income Tax Vs Shri Revansiddeshwar Co-operative Credit Society 4 the Income Tax Officer under Section 43B of the Act in the hands of the Assessee and consequential imposition of penalty under Section 271 (1) (c) of the Act at the rate of 100% of the tax amount. 3. The learned counsel for the respondent- Assessee has raised a preliminary objection about the maintainability of these appeals and has furnished before us a tax computation showing that the “tax effect” involved in both these appeals filed by the Revenue is less than Rs.20,00,000/- and therefore, these appeals filed by the Revenue are not maintainable in view of Circular No.21/2015 issued by Central Board Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, dated 10.12.2015, according to which the appeals

Date of order: 27.03.2018 ITA No.100036/2016 C/W ITA No.100035/2016 The Principal Commissioner of Income Tax Vs Shri Revansiddeshwar Co-operative Credit Society 5 under Section 260A of the Act before High Courts cannot be filed by the Department, if the tax effect is below Rs.20,00,000/-. 4. Learned counsel for the Respondent- Assessee submitted that the tax effect in the present cases comes to Rs.14,69,430/- and Rs.15,26,030/- respectively for both the assessment years and therefore the present appeals filed by Revenue are not maintainable. 5. Learned counsel for the appellant-Revenue Mr.Ameet Kumar Deshpande is not able to controvert this statement of the learned counsel for the respondent-Assessee. 6. In view of the aforesaid CBDT Circular, the present appeals filed by the Revenue are held to be not maintainable and the same are

Date of order: 27.03.2018 ITA No.100036/2016 C/W ITA No.100035/2016 The Principal Commissioner of Income Tax Vs Shri Revansiddeshwar Co-operative Credit Society 6 accordingly dismissed as not maintainable. No costs. Sd/- Sd/- JUDGE JUDGE LG