Case Note & Summary
The revenue filed an appeal under Section 260-A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal (ITAT) dated 30.11.2011 for the assessment year 2000-01. During the hearing, the assessee's senior counsel submitted that the returned income was Rs.1,29,19,590/- and the effective addition was Rs.2,12,74,378/-, resulting in a tax payable of only Rs.81,90,635/-. The assessee argued that in view of the CBDT Circular dated 20.09.2019, which prescribes a minimum tax effect for filing appeals, the appeal was not maintainable. The revenue's counsel did not dispute this submission. The court, after considering the circular, held that the appeal is not maintainable and dismissed it as withdrawn. The judgment was delivered by a division bench of the Karnataka High Court.
Headnote
A) Income Tax - Appeal - Low Tax Effect - Section 260-A of the Income Tax Act, 1961 - CBDT Circular dated 20.09.2019 - The revenue filed an appeal under Section 260-A of the Act against the order of the ITAT. The assessee contended that the tax effect was only Rs.81,90,635/-, which is below the threshold prescribed by the CBDT Circular dated 20.09.2019. The court held that in view of the circular, the appeal is not maintainable and dismissed it as withdrawn. (Paras 2-4)
Issue of Consideration
Whether the appeal filed by the revenue is maintainable in view of the low tax effect, considering the CBDT Circular dated 20.09.2019.
Final Decision
Appeal dismissed as withdrawn in view of CBDT Circular dated 20.09.2019.
Law Points
- Low tax effect
- CBDT Circular
- Section 260-A
- Income Tax Act
- 1961
- Appeal not maintainable
Case Details
2020 LawText (KAR) (07) 54
Alok Aradhe, Hemant Chandangoudar
E.I. Sanmathi (for revenue), A. Shankar (Senior Counsel) with M. Lava (for assessee)
Commissioner of Income Tax, Assistant Commissioner of Income Tax
M/s. Nirman Shelters (Bangalore) Pvt. Ltd.
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Nature of Litigation
Appeal under Section 260-A of the Income Tax Act, 1961 against order of ITAT.
Remedy Sought
Revenue sought to set aside the ITAT order and formulate substantial questions of law.
Filing Reason
Revenue aggrieved by ITAT order dated 30.11.2011 for assessment year 2000-01.
Previous Decisions
ITAT 'A' Bench, Bangalore passed order in ITA No.1103/Bang/2010 dated 30.11.2011.
Issues
Whether the appeal is maintainable in view of low tax effect as per CBDT Circular dated 20.09.2019.
Submissions/Arguments
Assessee submitted that tax effect is only Rs.81,90,635/-, below threshold prescribed by CBDT Circular dated 20.09.2019, hence appeal not maintainable.
Ratio Decidendi
An appeal by the revenue under Section 260-A of the Income Tax Act, 1961 is not maintainable if the tax effect is below the threshold prescribed by the CBDT Circular dated 20.09.2019.
Judgment Excerpts
When the matter was taken up today, learned Senior counsel for the assessee submitted that the returned income in response to the notice issued under Section 153A of the Act was `1,29,19,590/- and effective addition of `2,12,74,378/- has been made and therefore, the tax payable by the assessee is only `81,90,635/- and therefore, in view of the CBDT Circular dated 20.09.2019, the appeal is not maintainable.
Procedural History
Revenue filed appeal under Section 260-A of the Income Tax Act, 1961 against ITAT order dated 30.11.2011. During hearing, assessee raised objection regarding low tax effect. Court dismissed appeal as withdrawn.
Acts & Sections
- Income Tax Act, 1961: 260-A, 153A
