By Sri. K v. Aravind, Adv

1 IN THR HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 31 DAY OF MAY, 2010. PRESENT THR HON’BLE MR.JUSTICE JAYANT PATEL AND THR HON’BLE MR.JUSTICE B.SRBBNIVASKH GOWDA ITA NO.689/2015C/WITA Nos.690,691,692,693,694,695,696/2015 IN ITA NO.689/2015 BETWEEN: 1.THE COMMISSIONER OF INCOME-TAX,TDS, NO.59, HMT BHAVAN,TDS, NO.59, HMT BHAVAN, % FLOOR, BELLARY ROAD, GANGANAGAR,| BANGALORE -560 032. iaTHE ASST. COMMISSIONER OF INCOME-TAX,(TDS), CIRCLE-16(1),(TDS), CIRCLE-16(1), NO.99, HMT BHAVAN, % FLOOR BELLARY ROAD, GANGANAGAR, BANGALORE-560 032. ... APPELLANTS| (By SRI. K. V. ARAVIND, ADV.) 2 AND: M/S. BANGALORE CITY EMPLOYEES,HOUSING & SOCIAL WELFARE,|CO-OPERATIVE SOCIETY LTD.,NO.20, 3 MAIN ROAD, 3 CROSS,VIDYAGIRI LAYOUT, NAGARBHAVI 1 STAGE, |BANGALORE-560 O72. ... RESPONDENT THIS INCOMB TAX APPBAL IS FILED UNDER.SECTION 260-A OF THE INCOME TAX ACT, 1961, ARISINGOUT OF ORDER DATED 31/07/2015 PASSED IN ITANO.960/BANG/2011, FOR THE ASSESSMENT YEAR 1996-19907PRAYINGTORFORMULATETHRSUBSTANTIALQUESTIONS OF LAW STATED ABOVE. IN ITA NO.690/2015: BETWEEN 1.)THE COMMISSIONER OF INCOME-TAX, TDS, NO.59, HMT BHAVAN, % FLOOR, BELLARY ROAD, GANGANAGAR, BANGALORE-560 032. oOTHER ASST. COMMISSIONBR OF INCOME -TAX(TDS), CIRCLE-16(1), NO.59, HMT BHAVAN,(TDS), CIRCLE-16(1), NO.59, HMT BHAVAN, % FLOOR BELLARY ROAD, GANGANAGAR, BANGALORE-560 O32. ... APPELLANTS (By SRI. K. V. ARAVIND, ADV.) 3 AND: M/S. BANGALORE CITY EMPLOYEES,HOUSING & SOCIAL WELFARE,|CO-OPERATIVE SOCIETY LTD.,NO.20, 3 MAIN ROAD, 3 CROSS,VIDYAGIRI LAYOUT, NAGARBHAVI 1 STAGE, |BANGALORE-560 O72. ... RESPONDENT THIS INCOMB TAX APPBAL IS FILED UNDER.SECTION 260-A OF THE INCOME TAX ACT, 1961, ARISINGOUT OF ORDER DATED:31/07/2015 PASSED IN ITA NO.269/BANG/2015, FOR THE ASSESSMENT YEAR 1997-1998PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS|OF LAW STATEBED ABOVE IN ITA NO.691/2015 BETWEEN: 1.THE COMMISSIONER OF INCOME-TAX, TDS, NO.59, HMT BHAVAN, % FLOOR, BELLARY ROAD, GANGANAGAR, BANGALORE-560 032. oOTHER ASST. COMMISSIONBR OF INCOME -TAX(TDS), CIRCLE-16(1),NO.59, HMT BHAVAN,% FLOOR BELLARY ROAD,GANGANAGAR,(TDS), CIRCLE-16(1),NO.59, HMT BHAVAN,% FLOOR BELLARY ROAD,GANGANAGAR, BANGALORE-560 O32. ... APPELLANTS (By SRI. K. V. ARAVIND, ADV.) 4 AND: M/S. BANGALORE CITY EMPLOYEES,HOUSING & SOCIAL WELFARE,|CO-OPERATIVE SOCIETY LTD.,NO.20, 3 MAIN ROAD, 3 CROSS,VIDYAGIRI LAYOUT, NAGARBHAVI 1 STAGE, |BANGALORE-560 O72. ... RESPONDENT THIS INCOMB TAX APPBAL IS FILED UNDER.SECTION 260-A OF THE INCOME TAX ACT, 1961, ARISINGOUT OF ORDER DATED 31/07/2015 PASSED IN ITA NO.|2/0/BANG/2015, FOR THE ASSESSMENT YEAR 1998-1999PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS|OF LAW STATEBED ABOVE IN ITA NO.692/2015 BETWEEN: 1.THE COMMISSIONER OF INCOME-TAX, TDS, NO.59, HMT BHAVAN, % FLOOR, BELLARY ROAD,GANGANAGAR, BANGALORE-560 032.GANGANAGAR, BANGALORE-560 032. oOTHER ASST. COMMISSIONBR OF INCOME -TAX(TDS), CIRCLE-16(1),NO.59, HMT BHAVAN,% FLOOR BELLARY ROAD,GANGANAGAR,(TDS), CIRCLE-16(1),NO.59, HMT BHAVAN,% FLOOR BELLARY ROAD,GANGANAGAR, BANGALORE-560 O32. ... APPELLANTS (By SRI. K. V. ARAVIND, ADV.) 5) AND: M/S. BANGALORE CITY EMPLOYEES,HOUSING & SOCIAL WELFARE,|CO-OPERATIVE SOCIETY LTD.,NO.20, 3 MAIN ROAD, 3 CROSS,VIDYAGIRI LAYOUT, NAGARBHAVI 1 STAGE, |BANGALORE-560 O72. | ... RESPONDENT THIS INCOME TAX APPEAL IS FILED UNDER.SECTION 260-A OF THE INCOME TAX ACT, 1961, ARISINGOUT OF ORDER DATED 31/07/2015 PASSED IN ITA NO.|271/BANG/2015, FOR THE ASSESSMENT YEAR 1999-2000PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS|OF LAW STATEBED ABOVE IN ITA NO.693/2015 BETWEEN: 1.THE COMMISSIONER OF INCOME-TAX, TDS, NO.59, HMT BHAVAN, % FLOOR, BELLARY ROAD, GANGANAGAR, BANGALORE-560 032. BANGALORE-560 O32. ... APPELLANTS (By SRI. K. V. ARAVIND, ADV.) 5) AND: M/S. BANGALORE CITY EMPLOYEES,HOUSING & SOCIAL WELFARE,|CO-OPERATIVE SOCIETY LTD.,NO.20, 3 MAIN ROAD, 3 CROSS,VIDYAGIRI LAYOUT, NAGARBHAVI 1 STAGE, |BANGALORE-560 O72. | ... RESPONDENT THIS INCOME TAX APPEAL IS FILED UNDER.SECTION 260-A OF THE INCOME TAX ACT, 1961, ARISINGOUT OF ORDER DATED 31/07/2015 PASSED IN ITA NO.|271/BANG/2015, FOR THE ASSESSMENT YEAR 1999-2000PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS|OF LAW STATEBED ABOVE IN ITA NO.693/2015 BETWEEN: 1.THE COMMISSIONER OF INCOME-TAX, TDS, NO.59, HMT BHAVAN, % FLOOR, BELLARY ROAD, GANGANAGAR, BANGALORE-560 032. oOTHER ASST. COMMISSIONBR OF INCOME -TAX(TDS), CIRCLE-16(1), NO.59, HMT BHAVAN,(TDS), CIRCLE-16(1), NO.59, HMT BHAVAN, % FLOOR BELLARY ROAD, GANGANAGAR, BANGALORE-560 O32. ... APPELLANTS (By SRI. K. V. ARAVIND, ADV.) 6 AND: M/S. BANGALORE CITY EMPLOYEES,HOUSING & SOCIAL WELFARE,|CO-OPERATIVE SOCIETY LTD.,NO.20, 3 MAIN ROAD, 3 CROSS,VIDYAGIRI LAYOUT, NAGARBHAVI 1 STAGE, |BANGALORE-560 O72. ... RESPONDENT THIS INCOMB TAX APPBAL IS FILED UNDER.SECTION 260-A OF THE INCOME TAX ACT, 1961, ARISINGOUT OF ORDER DATED 31/07/2015 PASSED IN ITA NO.|2/2/BANG/2015, FOR THE ASSESSMENT YEAR 2000-2001PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS|OF LAW STATEBED ABOVE IN ITA NO.694/2015 BETWEEN: 1.THE COMMISSIONER OF INCOME-TAX, TDS, NO.59, HMT BHAVAN, % FLOOR, BELLARY ROAD, GANGANAGAR, BANGALORE-560 032. oOTHER ASST. COMMISSIONBR OF INCOME -TAX(TDS), CIRCLE-16(1),NO.59, HMT BHAVAN,% FLOOR BELLARY ROAD,GANGANAGAR,(TDS), CIRCLE-16(1),NO.59, HMT BHAVAN,% FLOOR BELLARY ROAD,GANGANAGAR, BANGALORE-560 O32. ... APPELLANTS (By SRI. K. V. ARAVIND, ADV.) J AND: M/S. BANGALORE CITY EMPLOYEES,HOUSING & SOCIAL WELFARE,|CO-OPERATIVE SOCIETY LTD.,NO.20, 3 MAIN ROAD, 3 CROSS,VIDYAGIRI LAYOUT, NAGARBHAVI 1 STAGE, |BANGALORE-560 O72. ... RESPONDENT THIS INCOMB TAX APPBAL IS FILED UNDER.SECTION 260-A OF THE INCOME TAX ACT, 1961, ARISINGOUT OF ORDER DATED 31/07/2015 PASSED IN ITA NO.|2/3/BANG/2015, FOR THE ASSESSMENT YEAR 2001-2002PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS|OF LAW STATEBED ABOVE IN ITA NO.695/2015 BETWEEN: 1.THE COMMISSIONER OF INCOME-TAX, TDS, NO.59, HMT BHAVAN, % FLOOR, BELLARY ROAD, GANGANAGAR, BANGALORE-560 032. oOTHER ASST. COMMISSIONBR OF INCOME -TAX(TDS), CIRCLE-16(1),NO.59, HMT BHAVAN,% FLOOR BELLARY ROAD,GANGANAGAR,(TDS), CIRCLE-16(1),NO.59, HMT BHAVAN,% FLOOR BELLARY ROAD,GANGANAGAR, BANGALORE-560 O32. ... APPELLANTS (By SRI. K. V. ARAVIND, ADV.) 8 AND: M/S. BANGALORE CITY EMPLOYEES,HOUSING & SOCIAL WELFARE,|CO-OPERATIVE SOCIETY LTD.,NO.20, 3 MAIN ROAD, 3 CROSS,VIDYAGIRI LAYOUT, NAGARBHAVI 1 STAGE, |BANGALORE-560 O72. ... RESPONDENT THIS INCOMB TAX APPBAL IS FILED UNDER.SECTION 260-A OF THE INCOME TAX ACT, 1961, ARISINGOUT OF ORDER DATED 31/07/2015 PASSED IN ITA NO.|2/4/BANG/2015, FOR THE ASSESSMENT YEAR 2002-2003PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS|OF LAW STATEBED ABOVE IN ITA NO.696/2015 BETWEEN: 1.THE COMMISSIONER OF INCOME-TAX, TDS, NO.59, HMT BHAVAN, % FLOOR, BELLARY ROAD, GANGANAGAR, BANGALORE-560 032. oOTHER ASST. COMMISSIONBR OF INCOME -TAX(TDS), CIRCLE-16(1),NO.59, HMT BHAVAN,% FLOOR BELLARY ROAD,GANGANAGAR,(TDS), CIRCLE-16(1),NO.59, HMT BHAVAN,% FLOOR BELLARY ROAD,GANGANAGAR, BANGALORE-560 O32. ... APPELLANTS (By SRI. K. V. ARAVIND, ADV.) Q AND: M/S. BANGALORE CITY EMPLOYEES,HOUSING & SOCIAL WELFARE,|CO-OPERATIVE SOCIETY LTD.,NO.20, 3 MAIN ROAD, 3 CROSS,VIDYAGIRI LAYOUT, NAGARBHAVI 1 STAGE, | BANGALORE-560 O72. ... RESPONDENT IN ITA NO.696/2015 BETWEEN: 1.THE COMMISSIONER OF INCOME-TAX, TDS, NO.59, HMT BHAVAN, % FLOOR, BELLARY ROAD, GANGANAGAR, BANGALORE-560 032. oOTHER ASST. COMMISSIONBR OF INCOME -TAX(TDS), CIRCLE-16(1),NO.59, HMT BHAVAN,% FLOOR BELLARY ROAD,GANGANAGAR,(TDS), CIRCLE-16(1),NO.59, HMT BHAVAN,% FLOOR BELLARY ROAD,GANGANAGAR, BANGALORE-560 O32. ... APPELLANTS (By SRI. K. V. ARAVIND, ADV.) Q AND: M/S. BANGALORE CITY EMPLOYEES,HOUSING & SOCIAL WELFARE,|CO-OPERATIVE SOCIETY LTD.,NO.20, 3 MAIN ROAD, 3 CROSS,VIDYAGIRI LAYOUT, NAGARBHAVI 1 STAGE, | BANGALORE-560 O72. ... RESPONDENT THIS INCOMB TAX APPBAL IS FILED UNDER.SECTION 260-A OF THE INCOME TAX ACT, 1961, ARISINGOUT OF ORDER DATED 31/07/2015 PASSED IN ITA NO.|2/9/BANG/2015, FOR THE ASSESSMENT YEAR 2004-2005PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS|OF LAW STATEBED ABOVE THRSKB APPBALS COMING ON FOR ORDERS THISDAY,JAYANT PATEL J.,DEBELIVKBTHR FOLLOWING: JU DBiGMENT In all the matters, the office has raised objectionson the ground of maintainability of the appeals sincethe tax eftfect is below=20,00,000/-. 2 |We have heard Sri. K.V. Aravind, learnedcounsel appearing for the appellants/Revenue. He fairly conceded that the Circular has been issued vide dated| 10| 10.07.2014 for not to pursue the matter where tax effect is less than|=20,00,000/-. But as per him, the stand of|the department is that whole case may fall in theexceptional category as mentioned in para 8 of theCircular and therefore, office objection may not bemaintained. 3.|Paragraph 8 of the aforesaid Circular readsas under:- €8Adversejudgments relating to the following| issues Should be contested on merits notwithstanding| that the tax effect entailed is less than the monetarylimits specified in para 3 above or there is no tax effect| (a)Where the Constitutional validity of theprovisions of an Act or Rule are underchallenge, orprovisions of an Act or Rule are underchallenge, or 11| (b)WhereBoard’sorder,Notification, Instruction or Circular has been held to.be illegal or ultra vires, or &;'Where Revenue Audit objection in theCAaAShas.beenacceptedbytheDepartment.” 4The contention of the learned counsel for theappellants/Revenue was that it would fall in thecategory of Clause (a) of above paragraph No. 8. 5.|When we further enquired with the counselas to whether constitutional validity of any of theprovision of the Act or Rule was challenged or not, heconceded that they were not challenged before theTribunal. Further, he submits that since statutoryprovision is interpreted by the Tribunal to apply withthe retrospective effect, it may fall in the category ofClause(a) of the paragraph No.8. 6.|InOUTview,the contention1S.well-founded and also on non-existent premises. Whenthere was no constitutional validity of any provision orRule under the challenge before the Tribunal, it cannotbe said that the present matter may fall in theexceptional category of clause (a) of paragraph 8reterred to herein above. not TS|The tax effect is less than prescribed limit in all the matters. Hence, office objection is maintainedwith the observation that in the appropriate case whenthe question arises for interpretation of the provisions ofthe Act which is considered by the Tribunal, the saidquestion shall remain open with further clarificationthat tax effect in respective matter may be exceeding theminimum prescribed limit. ��� �3474�A42:2:8/7�720/<�<:7A874<�89�0;;86<:/?1(��� ���)!� ���� ������� ����� �������