IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF AUGUST, 2019 PRESENT THE HON’BLE MR.JUSTICE L. NARAYANA SWAMY AND THE HON’BLE MR.JUSTICE R. DEVDAS INCOME TAX APPEAL Nos.224/2016 & 412/2016 BETWEEN:
1. The Principal Commissioner of Income-Tax, C.R. Building, Attavara, Mangalore – 575 001.
2. The Assistant Commissioner of Income-Tax, Circle-2(1), C.R. Building, Attavara, Mangalore – 575 001. ... Appellants (By Sri. Aravind K.V. and Sri Dilip M., Advocates) AND:
M/s. The Landlinks Housing Development Corporation, No.9, City Point, Kodialbail, Mangalore.
PAN: AABFL 3322 R. ... Respondent (By Smt. Shetall and Sri S. Parthasarathi, Advocates) These Income Tax Appeals are filed under Section 260-A of the Income Tax Act, 1961, arising out of order dated 30.10.2015 passed in ITA No.160/Bang/2014 & C.O. No.72/Bang/2014, for the Assessment Year 2010-2011 and praying to:
(i) Formulate the substantial questions of law stated above;
(ii) Allow the appeal and set aside the orders passed by the ITAT, Bengaluru in ITA No.160/Bang/2014 & C.O. No.72/Bang/2014 dated 30.10.2015 confirming the order of the Appellate Commissioner and confirm the order passed by the Assistant Commissioner of Income Tax, Circle-2(1), Mangalore.
(iii) To pass such other suitable orders as this Hon’ble Court deems fit to grant in the facts and circumstances of the case in the interest of justice and equity.
These Income Tax Appeals coming on for Final Hearing, this day, DEVDAS J., Delivered the following:
J U D G M E N T The learned counsel for the appellant-Revenue brings to the notice of this Court a Circular bearing No.17 of 2019 dated 08th August, 2019 wherein the further enhancement of monetary limit for filing of appeals by the Departments before the Income- Tax Appellate Tribunals, High Courts and Special Leave Petitions/Appeals before the Supreme Court stands amended, and by the said amendment the earlier monetary limit of Rs.50,00,000/- (Rupees fifty lakh) has not been raised to Rs.1,00,00,000/- (Rupees one crore). The earlier monetary limit was prescribed as per Circular No.3 of 2018 dated 11th July, 2018. In the light of the same, the learned counsel submits that these appeals are not maintainable and in view of the Circular, these appeals may be permitted to be withdrawn. Further, the learned counsel would also draw the attention of this Court to Clause 10 of the Circular No.3 of 2018 dated 11th July, 2018 wherein certain exceptions are carved out. The learned counsel submits that at the present stage it may not be possible for him to submit whether the matter falls under any of the exceptions. Therefore, it is prayed that liberty may be reserved to the appellants to move this Court, if it is found that the matter falls within the exception carved out in Clause 10 of Circular bearing Number 3 of 2018.
2. On the query of the Court as to whether the Circular is applicable to pending matters, the learned counsel draws the attention of this Court to the communication dated 20th August, 2019 made by the Central Board of Direct Taxation to all the Chief Commissioners of Income Tax clarifying at paragraph No.3 that the monetary limit prescribed in Circular No.17 of 2019 is applicable to all pending Special Leave Petitions, Appeals, Cross Objections and References.
3. In view of the above, we permit the appellants to withdraw these appeals for the reasons stated above. Liberty is also granted to the appellants to seek revival of these appeals, if it is found that the matter falls within the exception carved out in Clause 10 of Circular bearing No.3 of 2018.
SD/- JUDGE SD/- JUDGE Bvk/-