THE COMMR OF INCOME TAX V. M D YASHODHARAN

ITA/254/2007

AI Insights

This case involves an appeal by the Commissioner of Income-Tax and the Income-Tax Officer against Sri M D Yashodharan concerning the valuation of the subject matter of the appeal and its compliance with the monetary limits prescribed by the CBDT Circular. The appeal was dismissed by the High Court of Karnataka, which held that the tribunal and the high court lacked jurisdiction to entertain the appeal as the monetary thresholds were not met. The court also addressed the internal communication aspect of the CBDT Circular and its statutory recognition post the amendment to Section 268A of the Income Tax Act.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 729180 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 07-01-2013
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: D S ANIRUDDHA
• Assessee Lawyers: K V ARAVIND
• Keywords: Audit objection; Monetary limit; Internal communication; Statutory recognition
• Section: 268A; 260A; 254

Judgement Text

"IN THE HIGH COURT OF KARNATAKA AT BANGALORE Dated this the 7th day of January, 2013 PRESENT THE HON’BLE MR JUSTICE D V SHYLENDRA KUMAR AND THE HON’BLE MR JUSTICE B MANOHAR Income Tax Appeal No. 254 of 2007 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX C R BUILDING QUEENS ROAD BANGALORE. 2. THE INCOME-TAX OFFICER WARD 6(4), C R BUILDING, QUEENS ROAD BANGALORE. … APPELLANTS [By Sri K V Aravind, Adv.] AND: SRI M D YASHODHARAN NO.712, 4TH CROSS, 7TH MAIN I CROSS, KALYAN NAGAR BANGALORE. … RESPONDENT [By Sri D S Aniruddha, Adv.] THIS APPEAL IS FILED UNDER SECTION 260A OF THE INCOME TAX ACT, 1961 ARISING OUT OF ORDER DATED 31.08.2006 PASSED IN ITA NO. 1392/BANG/2005, FOR THE 2 ASSESSMENT YEAR 2001-02, PRAYING TO SET ASIDE THE SAID ORDER OF THE TRIBUNAL AND ETC., THIS APPEAL COMING ON FOR HEARING, THIS DAY, SHYLENDRA KUMAR J., DELIVERED THE FOLLOWING: J U D G M E N T This appeal by the revenue under Section 260A of the Income Tax Act, 1961 [for short, the Act], was admitted to examine the following substantial questions of law: 1. Whether, the Tribunal exercising jurisdiction under Section 254 of the Act has powers/jurisdiction to reject an appeal filed by the Revenue on the ground that it is beyond monetary limit prescribed by the Board, without addressing the controversy raised before it?. 2. Whether the Tribunal was correct in rejecting the appeal filed by the Revenue without being satisfied as to whether the Department appeal fell within the exceptions prescribed in the CBDT Circular by affording such an opportunity where the Department would have demonstrated that the matter had been pursued because of an audit objection raised? 3 3. Whether the Tribunal has a jurisdiction to reject the appeal filed by the Revenue on the ground of monetary limit as prescribed by the Board, which is wholly an internal matter of the Revenue? 2. The questions are as to the maintainability of the present appeal having regard to the valuation of the subject matter of the appeal and the board circular No 2 of 2005 dated 24-10-2006 stipulating a minimum value for the department to file an appeal under Section 260A of the Act etc. 3. Heard Sri K V Aravind, learned standing counsel for the appellants-revenue and Sri D S Anirudda, learned counsel for respondent-assessee. 4. Sri K V Aravind, learned standing counsel for the appellants-revenue fairly submits that though the revenue had raised a contention that the circular was only for an internal communication and education of the income tax authorities, that having been found statutory recognition 4 now by the amendment to Section 268A of the Act by Finance Act of 2008 with retrospective effect from 1-4- 1999, the statutory provision operates as an embargo for maintaining this appeal having regard to the valuation of the subject matter of the appeal being below Rs 2.00 lakh for the tribunal and Rs 4.00 lakh for this court and neither conditions having been fulfilled in the present case, as subject matter of this appeal is Rs 1,60,800/- . 5. In this view of the matter, this appeal is dismissed answering the questions against the revenue. Sd/- JUDGE Sd/- JUDGE *pjk "