THE COMMISSIONER OF INCOME TAX V. SRI B RAMESH

ITA/881/2007

AI Insights

The case involves two income tax appeals filed by the Commissioner of Income-Tax and the Assistant Commissioner of Income Tax against Sri B Ramesh and others, concerning the assessment period from April 1, 1985, to February 6, 1996. The appeals were based on orders passed by the ITAT, Bangalore, which confirmed the orders of the Assistant Commissioner of Income Tax. The primary legal issue was the applicability of the Rs. 10 lakhs mandatory limit for filing appeals by the Revenue, as set out in Circular No.3/2011. The court referenced the decision in Ranka and Ranka to conclude that the circular applies to pending appeals and has a prospective effect.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 729188 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 06-11-2012
• Assessment Year: misc
• Other Referred Cases: Commissioner of Income Tax and Another Vs. Ranka and Ranka
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: A SHANKAR; M LAVA
• Assessee Lawyers: K V ARAVIND
• Keywords: Income tax appeal; Mandatory Limit; Pending appeals; Prospective effect
• Section: 260-A

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 06TH DAY OF NOVEMBER, 2012 PRESENT THE HON’BLE MR.JUSTICE K. SREEDHAR RAO AND THE HON’BLE MR.JUSTICE B.V. PINTO INCOME-TAX APPEAL NO.881 OF 2007 C/W INCOME-TAX APPEAL NO.882 OF 2007 IN ITA NO.881 OF 2007 BETWEEN 1. THE COMMISSIONER OF INCOME-TAX NO.55/1, SHILPASHREE VIDHYARANYA COMPLEX VISHVESHWARAPURAM MYSORE-570 008 2. THE ASSISTANT COMMISSIONER OF INCOME TAX INVESTIGATION CIRCLE-II NO.55/1, SHILPASHREE VIDHYARANYA COMPLEX VISHVESHWARAPURAM MYSORE-570 008 ... APPELLANTS (BY SRI.K V ARAVIND, ADV.) 2 AND 1. SRI B RAMESH M/S. SHAMSUNDER MEDICAL STORES VIDYARANYAPURAM MYSORE 2. SMT.DR.SAHANA RAMESH W/O LATE B.RAMESH NO.SF-9, II FLOOR SHIVASHANKARI PERLS 26-30 UDAYANAGAR II CROSS, CHIKKALASANDRA BANGALORE-560 061 3. DR.ARCHANA RAMESH NO.299, I CROSS BHARATH HOUSING CO-OPERATIVE SOCIETIES,UTTARAHALLI MAIN ROAD BANGALORE-560 061 ... RESPONDENTS (BY SRI.A SHANKAR & SRI M LAVA, ADVS.) THIS ITA IS FILED U/S.260-A OF I.T.ACT, 1961 ARISING OUT OF ORDER DATED 27-07-2007 PASSED IN IT(SS)A 81/BANG/1997 FOR THE ASSESSMENT PERIOD 01-04-1985 TO 06-02-1996, PRAYING THAT THIS HON'BLE COURT MAY BE PLEASED TO: I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, II. ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT, BANGALORE IN IT(SS)A 81/BANG/1997 DATED 27-07-2007 CONFIRMING THE ORDER PASSED BY THE ASST.COMMISSIONER OF INCOME TAX, INVESTIGATION CIRCLE-II, MYSORE, IN THE INTEREST OF JUSTICE AND EQUITY. 3 ITA NO.882 OF 2007 BETWEEN 1. THE COMMISSIONER OF INCOME TAX NO.55/1, SHILPASHREE VIDHYARANYA COMPLEX VISHVESHWARAPURAM MYSORE-570 008 2. THE ASSISTANT COMMISSIONER OF INCOME TAX INVESTIGATION CIRCLE-II MYSORE ... APPELLANTS (BY SRI.K.V.ARAVIND, ADV.) AND DR (MRS.) SAHANA NO.992, E & F BLOCK KUVEMPUNAGAR MYSORE ... RESPONDENT (BY SRI.A SHANKAR & SRI M LAVA, ADVS.) THIS ITA FILED U/S.260-A OF I.T.ACT, 1961 ARISING OUT OF ORDER DATED 27-07-2007 PASSED IN ITA NO. 82/BNG/1997, FOR THE BLOCK ASSESSMENT PERIOD - 1/4/1985 TO 6/2/1996, PRAYING THAT THIS HON'BLE COURT MAY BE PLEASED TO: I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, II. ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT BANGALORE IN ITA NO. 82/BNG/1997,DATED 27-07-2007 CONFIRMING THE ORDER PASSED BY ASSISTANT COMMISSIONER OF INCOME TAX, INVESTIGATION CIRCLE - II, MYSORE. 4 THESE APPEALS ARE COMING ON FOR FINAL HEARING THIS DAY, SREEDHAR RAO J., DELIVERED THE FOLLOWING:- J U D G M E N T The mandatory limit in the above cases is less than Rs.10 lakhs. This Court in the case of Commissioner of Income Tax and Another Vs. Ranka and Ranka reported in 72 DTR 270 has held that the Circular No.3/2011 which prescribes the mandatory limits of Rs.10 lakhs for filing appeal by the Revenue applies to pending appeal and also has prospective effect. Thus rejected the contention of the Revenue on the ground that the said Circular has only prospective effect and does not apply to pending appeals. The Revenue has preferred SLP No.27468/2012 before the Supreme Court, pending decision. In view of the decision of this Court in Ranka and Ranka case, the appeal is to be dismissed on the ground of mandatory limit. If the Revenue succeeds in the SLP pending before the Supreme Court, the appellants are at liberty to make 5 an application for revival of the appeals for disposal on merits. Accordingly, the appeals are disposed of. Sd/- JUDGE Sd/- JUDGE nvj "