Relief to Manipal Finance Corporation Ltd: Karnataka HC dismisses Appeal of Revenue on Grounds of Monetary Limits [Read Order]

The Karnataka High Court granted relief to Manipal Finance Corporation Limited by dismissing the appeal of the revenue. The high court has dismissed the same on the grounds of monetary limits.

The appellant, Commissioner of Income Tax of Mangaluru filed two appeals under 260-A of the Income Tax Act, 1961 against the Manipal Finance which has been taken by the high court bench together while hearing and deciding the case. The two appeals were against the order of the Income Tax Appellate Tribunal (ITAT) passed under two different Assessment Years, i.e., 2007-08 and 2008-09.

The revenue prayed to set aside the order of the ITAT and Commissioner of Income Tax (Appelas) dated 12.03.2013 and  21.03.2012 respectively for the assessment years 2007-08 and 2008-09.

The bench of Justice Ravi Malimath and Justice Ashok Kinagi decided that “the appeal is not maintainable in view of the monetary limits in terms of Circular No.17 of 2019 dated 08.08.2019 passed by Director (ITJ), Central Board Direct Taxes, New Delhi”.

According to the aforementioned circular, the monetary limit filing the appeal before the High Court is 1 crore. The circular stated that the Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee.

If, in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit.

Also, no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit.

Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year, no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit. In cases where a composite order/ judgement involves more than one assessee. each assessee shall be dealt with separately. Thus viewing the instructions given and monetary limits set by the abovementioned circular, it was decided to dismiss the appeal of the revenue.

To Read the full text of the Order CLICK HERE

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