THE COMMISSIONER OF INCOME TAX V. R K RANGANATH

ITA/1082/2008

AI Insights

The case involves multiple Income Tax Appeals (ITAs) filed by the Commissioner of Income Tax and the Assistant Commissioner of Income Tax against R.K. Ranganath and R.K. Rakesh, concerning various assessment years. The appeals were based on orders passed by the ITAT Bangalore, which the appellants sought to set aside. The primary legal contention revolved around the applicability of Circular 3/11, which stipulates monetary limits for filing appeals. The respondents argued that the appeals were not maintainable under this circular as the monetary limits involved were below 10 lakhs. The court referenced its earlier decision in Ranka and Ranka, 72 DTR 270, which held the circular to be applicable to all pending appeals, not just those filed after the circular's issuance.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 729208 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 25-09-2012
• Assessment Year: misc
• Other Referred Cases: Ranka and Ranka, 72 DTR 270
• 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: Appeal; Income Tax; ITAT Bangalore; Monetary limits; Substantial questions of law; Circular 3/11
• Section: 260-A

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA, BANGALORE DATED THIS THE 25TH DAY OF SEPTEMBER, 2012 PRESENT THE HON'BLE MR. JUSTICE K.SREEDHAR RAO AND THE HON'BLE MR. JUSTICE B.MANOHAR I.T.A. No.1082 OF 2008 C/w. I.T.A. Nos.1083, 1084, 1085, 1086, 1087, 1088, 1089 & 1090/2008 I.T.A. No.1082 OF 2008:- BETWEEN:- 1. The Commissioner of Income Tax, C.R. Building, Queens Road, Bangalore. 2. The Assistant Commissioner of Income Tax, Central Circle-1(2), C.R.Building, Queens Road, Bangalore. Appellants (By Sri K.V. Aravind, Advocate) AND:- R.K. Ranganath, No.1, 15th Cross, Kilari Road, Bangalore. Respondent (By Sri A. Shankar and Sri M. Lava, Advocates) 2 This I.T.A. is filed U/s.260-A of the I.T. Act, 1961 arising out of Order dated 18.07.2008 passed in ITA No.1038/BNG/2007, for the Assessment Year 2004-05, praying that this Hon’ble Court may be pleased to: (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set aside the order passed by the ITAT Bangalore in ITA No.1038/BNG/2007, dated 18.07.2008 confirm the orders of the Appellate Commissioner and confirm the order passed by the Assistant Commissioner of Income Tax, Central Circle-1(2), Bangalore in the interest of justice and equity. I.T.A. No.1083 OF 2008:- BETWEEN:- 1. The Commissioner of Income Tax, C.R. Building, Queens Road, Bangalore. 2. The Assistant Commissioner of Income Tax, Central Circle-1(2), C.R.Building, Queens Road, Bangalore. Appellants (By Sri K.V. Aravind, Advocate) AND:- R.K. Ranganath, No.1, 15th Cross, Kilari Road, Bangalore. Respondent (By Sri A. Shankar, Advocate) This I.T.A. is filed U/s.260-A of the I.T. Act, 1961 arising out of Order dated 18.07.2008 passed in ITA 3 No.1037/BNG/2007, for the Assessment Year 2003-04, praying that this Hon’ble Court may be pleased to: (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set aside the order passed by the ITAT Bangalore in ITA No.1037/BNG/2007, dated 18.07.2008 confirm the orders of the Appellate Commissioner and confirm the order passed by the Assistant Commissioner of Income Tax, Central Circle-1(2), Bangalore in the interest of justice and equity. I.T.A. No.1084 OF 2008:- BETWEEN:- 1. The Commissioner of Income Tax, C.R. Building, Queens Road, Bangalore. 2. The Assistant Commissioner of Income Tax, Central Circle-1(2), C.R.Building, Queens Road, Bangalore. Appellants (By Sri K.V. Aravind, Advocate) AND:- R.K. Ranganath, No.1, 15th Cross, Kilari Road, Bangalore. Respondent (By Sri A. Shankar, Advocate) This I.T.A. is filed U/s.260-A of the I.T. Act, 1961 arising out of Order dated 18.07.2008 passed in ITA No.1036/BNG/2007, for the Assessment Year 2000-01, praying that this Hon’ble Court may be pleased to: (i) formulate the substantial questions of law stated therein 4 and (ii) allow the appeal and set aside the order passed by the ITAT Bangalore in ITA No.1036/BNG/2007, dated 18.07.2008 confirm the orders of the Appellate Commissioner and confirm the order passed by the Assistant Commissioner of Income Tax, Central Circle-1(2), Bangalore in the interest of justice and equity. I.T.A. No.1085 OF 2008:- BETWEEN:- 1. The Commissioner of Income Tax, C.R. Building, Queens Road, Bangalore. 2. The Assistant Commissioner of Income Tax, Central Circle-1(2), C.R.Building, Queens Road, Bangalore. Appellants (By Sri K.V. Aravind, Advocate) AND:- R.K. Ranganath, No.1, 15th Cross, Kilari Road, Bangalore. Respondent (By Sri A. Shankar, Advocate) This I.T.A. is filed U/s.260-A of the I.T. Act, 1961 arising out of Order dated 18.07.2008 passed in ITA No.1035/BNG/2007, for the Assessment Year 1999-00, praying that this Hon’ble Court may be pleased to: (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set aside the order passed by the ITAT Bangalore in ITA No.1035/BNG/2007, dated 18.07.2008 confirm the orders of the Appellate 5 Commissioner and confirm the order passed by the Assistant Commissioner of Income Tax, Central Circle-1(2), Bangalore in the interest of justice and equity. I.T.A. No.1086 OF 2008:- BETWEEN:- 1. The Commissioner of Income Tax, C.R. Building, Queens Road, Bangalore. 2. The Assistant Commissioner of Income Tax, Central Circle-1(2), C.R.Building, Queens Road, Bangalore. Appellants (By Sri K.V. Aravind, Advocate) AND:- R.K. Rakesh, No.1, 15th Cross, Kilari Road, Bangalore. Respondent (By Sri A. Shankar, Advocate) This I.T.A. is filed U/s.260-A of the I.T. Act, 1961 arising out of Order dated 18.07.2008 passed in ITA No.1034/BNG/2007, for the Assessment Year 2003-04, praying that this Hon’ble Court may be pleased to: (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set aside the order passed by the ITAT Bangalore in ITA No.1034/BNG/2007, dated 18.07.2008 confirm the orders of the Appellate Commissioner and confirm the order passed by the Assistant Commissioner of Income Tax, Central Circle-1(2), Bangalore in the interest of justice and equity. 6 I.T.A. No.1087 OF 2008:- BETWEEN:- 1. The Commissioner of Income Tax, C.R. Building, Queens Road, Bangalore. 2. The Assistant Commissioner of Income Tax, Central Circle-1(2), C.R.Building, Queens Road, Bangalore. Appellants (By Sri K.V. Aravind, Advocate) AND:- R.K. Rakesh, No.1, 15th Cross, Kilari Road, Bangalore. Respondent (By Sri A. Shankar, Advocate) This I.T.A. is filed U/s.260-A of the I.T. Act, 1961 arising out of Order dated 18.07.2008 passed in ITA No.1033/BNG/2007, for the Assessment Year 2002-03, praying that this Hon’ble Court may be pleased to: (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set aside the order passed by the ITAT Bangalore in ITA No.1033/BNG/2007, dated 18.07.2008 confirm the orders of the Appellate Commissioner and confirm the order passed by the Assistant Commissioner of Income Tax, Central Circle-1(2), Bangalore in the interest of justice and equity. 7 I.T.A. No.1088 OF 2008:- BETWEEN:- 1. The Commissioner of Income Tax, C.R. Building, Queens Road, Bangalore. 2. The Assistant Commissioner of Income Tax, Central Circle-1(2), C.R.Building, Queens Road, Bangalore. Appellants (By Sri K.V. Aravind, Advocate) AND:- R.K. Rakesh, No.1, 15th Cross, Kilari Road, Bangalore. Respondent (By Sri A. Shankar, Advocate) This I.T.A. is filed U/s.260-A of the I.T. Act, 1961 arising out of Order dated 18.07.2008 passed in ITA No.1032/BNG/2007, for the Assessment Year 2001-02, praying that this Hon’ble Court may be pleased to: (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set aside the order passed by the ITAT Bangalore in ITA No.1032/BNG/2007, dated 18.07.2008 confirm the orders of the Appellate Commissioner and confirm the order passed by the Assistant Commissioner of Income Tax, Central Circle-1(2), Bangalore in the interest of justice and equity. 8 I.T.A. No.1089 OF 2008:- BETWEEN:- 1. The Commissioner of Income Tax, C.R. Building, Queens Road, Bangalore. 2. The Assistant Commissioner of Income Tax, Central Circle-1(2), C.R.Building, Queens Road, Bangalore. Appellants (By Sri K.V. Aravind, Advocate) AND:- R.K. Rakesh, No.1, 15th Cross, Kilari Road, Bangalore. Respondent (By Sri A. Shankar and M. Lava, Advocates) This I.T.A. is filed U/s.260-A of the I.T. Act, 1961 arising out of Order dated 18.07.2008 passed in ITA No.1031/BNG/2007, for the Assessment Year 2000-01, praying that this Hon’ble Court may be pleased to: (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set aside the order passed by the ITAT Bangalore in ITA No.1031/BNG/2007, dated 18.07.2008 confirm the orders of the Appellate Commissioner and confirm the order passed by the Assistant Commissioner of Income Tax, Central Circle-1(2), Bangalore in the interest of justice and equity. 9 I.T.A. No.1090 OF 2008:- BETWEEN:- 1. The Commissioner of Income Tax, C.R. Building, Queens Road, Bangalore. 2. The Assistant Commissioner of Income Tax, Central Circle-1(2), C.R.Building, Queens Road, Bangalore. Appellants (By Sri K.V. Aravind, Advocate) AND:- R.K. Rakesh, No.1, 15th Cross, Kilari Road, Bangalore. Respondent (By Sri A. Shankar and M. Lava, Advocates) This I.T.A. is filed U/s.260-A of the I.T. Act, 1961 arising out of Order dated 18.07.2008 passed in ITA No.1030/BNG/2007, for the Assessment Year 1999-2000, praying that this Hon’ble Court may be pleased to: (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set aside the order passed by the ITAT Bangalore in ITA No.1030/BNG/2007, dated 18.07.2008 confirm the orders of the Appellate Commissioner and confirm the order passed by the Assistant Commissioner of Income Tax, Central Circle-1(2), Bangalore in the interest of justice and equity. These appeals are coming on for final hearing this day, SREEDHAR RAO, J., delivered the following: 10 J U D G M E N T In all the above appeals, it is the contention of the respondents that the appeals are not maintainable because of Circular 3/11. The monetary limits involved in the appeals is below 10 lakhs. This Court in the case of Ranka and Ranka, 72 DTR 270, has held that the Circular 3/11 dated 09.02.2011 is discriminatory and violative of Article 14 and has held that the benefit of monetary limit under the circular should be extended to all the pending appeals and that the said circular need not be construed as only of prospective effect. The revenue has filed appeal against the said judgment in S.L.P.No.27468/2012. The said issue is under consideration. If the appeal of the revenue is allowed, the effect would be that the Circular 3/11 would be only of prospective effect. But as of now, it is held by this Court that the circular is applicable to all the pending appeals. In that view, the appeals are disposed of as 11 closed with liberty to the appellant to file an application for revival of the appeals subject to the result of S.L.P.No. 27468/2012. Sd/- JUDGE Sd/- JUDGE psg* "