2020 (3) TMI 581 - HC - Wealth-tax

Maintainability of appeal - monetary limit - low tax effect - HELD THAT - Revenue contention that said Circular is prospective and cannot be made applicable to the pending matters, which we are not inclined to accept in the light of law laid down by Coordinate Bench of this Court in the case of COMMISSIONER OF INCOME TAX ANOTHER V/S RANKA RANKA 2011 (11) TMI 449 - KARNATAKA HIGH COURT wherein it has been held that scope of Circular issued by Central Board of Direct Taxes would be applicable to the pending proceedings, which also came to be affirmed by Apex Court in the case DIRECTOR OF INCOME TAX V/S S.R.M.B DAIRY FARMING (P) LTD. 2017 (11) TMI 1494 - SUPREME COURT . In fact, Central Board of Direct Taxes has also issued an instruction bearing No.F.No.279/MISC/M-93/2018-ITJ dated 20.08.2019 intimating all the Principal Chief Commissioners of Income Tax that Circular No.17/2019 would be applicable on all pending SLPs/appeals/cross objections/references. Hence, contention of learned counsel Sri.E.I.Sanmathi stands rejected. Present appeal as already noticed herein above, being an off shoot of common order passed by ITAT, this appeal also deserves to be dismissed. Accordingly, appeal stands dismissed as not maintainable

Summary

Issues:
1. Applicability of Circular No.17/2019 dated 08.08.2019 to pending matters.
2. Interpretation of law regarding the scope of Circulars issued by the Central Board of Direct Taxes.
3. Dismissal of appeal based on monetary limits fixed in Circular No.17/2019.

Analysis:
The judgment pertains to an appeal against the order passed by the Income Tax Appellate Tribunal (ITAT) in a group of cases. The appellant challenged the order dated 31.03.2015, which was a common order passed in multiple cases. The Court noted a similar instance where an appeal was dismissed based on monetary limits set in Circular No.17/2019. The Revenue contended that the Circular should not apply to pending matters. However, the Court referred to a previous decision by a Coordinate Bench in the case of COMMISSIONER OF INCOME TAX & ANOTHER V/S RANKA & RANKA and a subsequent affirmation by the Apex Court in DIRECTOR OF INCOME TAX V/S S.R.M.B DAIRY FARMING (P) LTD. The Central Board of Direct Taxes also issued an instruction confirming the applicability of Circular No.17/2019 to all pending proceedings. Consequently, the Court rejected the contention of the appellant's counsel, Sri. E.I. Sanmathi.

The Court, based on the aforementioned legal principles and facts, concluded that the present appeal, being a result of the common order passed by ITAT, should also be dismissed. The appeal was deemed not maintainable in light of the order passed in a similar case on 24.10.2019. Additionally, the Court directed that all pending interlocutory applications, if any, shall stand consigned to records.