Date Of Order: 27.03.2018 Ita v. Shri Revansiddeshwar Co-Operative Credit Society

IN THE HIGH COURT OF KARNATAKAKALABURAGI BENCH DATED THIS THE 27 DAY OF MARCH 2018 PRESENT THE HON’BLE Dr. JUSTICE VINEET KOTHARI AND THE HON’BLE MR. JUSTICE R. DEVDAS INCOME TAX APPEAL No.100036/2016C/WINCOME TAX APPEAL No.100035/2016 ITA No.100036/2016: Between: 1.The Principal Commissioner of Income TaxDr. B.R. Ambedkar Veedhi, BelagaviDr. B.R. Ambedkar Veedhi, Belagavi 2.The Income Tax Officer Ward-2, Bijapur (By Sri Ameet Kumar Deshpande, Advocate) … Appellants And: Shri RevansiddeshwarCo-operative Credit SocietyMain Road, Horti, Indi TalukBijapur District – 586 209PAN: AABAS 3319N (By Sri G.B. Yadav, Advocate) … Respondent Date of order: 27.03.2018ITA No.100036/2016 C/W ITA No.100035/2016The Principal Commissioner of Income Tax VsShri Revansiddeshwar Co-operative Credit Society 2 This Income Tax Appeal is filed under Section 260A ofthe Income Tax Act, 1961, praying to formulate thesubstantial questions of law stated above and allow theappeal and set aside the orders passed by the Income TaxAppellate Tribunal, Bangalore Bench “A” Bangalore in ITANo.843(B)/2014 Dtd. 31.08.2015 and confirm the orderpassed by the Income Tax Officer, Ward-1, Gokak. ITA No.100035/2016: Between: 1.The Principal Commissioner of Income Tax Dr. B.R. Ambedkar Road, Belagavi 2.The Income Tax OfficerWard-2, VijayapurWard-2, Vijayapur (By Sri Ameet Kumar Deshpande, Advocate) … Appellants And: M/s Basavan Bagewadi TalukaPrimary teachers Co-Operative SocietyBasavan Bagewadi – 586 203PAN: AAAAB5594K (By Sri G.B. Yadav, Advocate) … Respondent This Income Tax Appeal is filed under Section 260A ofthe Income Tax Act, praying to formulate the substantialquestions of law stated above and allow the appeal and setaside the orders passed by the Income Tax AppellateTribunal, Bangalore Bench “C” Bangalore in ITANo.1503/BANG/2014 Dtd. 30.07.2015 and confirm theorder passed by the Income Tax Officer, Ward-2, Vijayapur. Date of order: 27.03.2018 ITA No.100036/2016 C/W ITA No.100035/2016The Principal Commissioner of Income Tax VsShri Revansiddeshwar Co-operative Credit Society 3 These appeals coming on for admission this day,VINEET KOTHARI J., delivered the following: J U D G M E N T Mr. Ameet Kumar Deshpande, Advocate for Appellant-Revenue Mr. G.B. Yadav, Advocate for Respondent-Assessee 1.Both these appeals are filed by the Revenueagainst the Assessee for Assessment Year2010-2011 and 2011-2012 respectively. TheIncome Tax Appellate Tribunal had decidedboth the Income Tax Appeals filed by theassessee in ITA No.843(B)/2014 and by theRevenue in ITA No.1503/Bang/2014allowing the appeal of the assessee vide orderdated 31.08.2015 and dismissing the appealof the Revenue vide order dated 30.07.2015. 2.The two issues arising in these appeals wereabout the deletion of the additions made by Date of order: 27.03.2018 ITA No.100036/2016 C/W ITA No.100035/2016The Principal Commissioner of Income Tax VsShri Revansiddeshwar Co-operative Credit Society 4 the Income Tax Officer under Section 43B of the Act in the hands of the Assessee andconsequential imposition of penalty underSection 271 (1) (c) of the Act at the rate of100% of the tax amount. 3.The learned counsel for the respondent-Assessee has raised a preliminary objectionabout the maintainability of these appealsand has furnished before us a taxcomputation showing that the “tax effect”involved in both these appeals filed by theRevenue is less than Rs.20,00,000/- andtherefore, these appeals filed by the Revenueare not maintainable in view of CircularNo.21/2015 issued by Central Board DirectTaxes, Department of Revenue, Ministry ofFinance, Government of India, dated10.12.2015, according to which the appeals Date of order: 27.03.2018 ITA No.100036/2016 C/W ITA No.100035/2016The Principal Commissioner of Income Tax VsShri Revansiddeshwar Co-operative Credit Society 3.The learned counsel for the respondent-Assessee has raised a preliminary objectionabout the maintainability of these appealsand has furnished before us a taxcomputation showing that the “tax effect”involved in both these appeals filed by theRevenue is less than Rs.20,00,000/- andtherefore, these appeals filed by the Revenueare not maintainable in view of CircularNo.21/2015 issued by Central Board DirectTaxes, Department of Revenue, Ministry ofFinance, Government of India, dated10.12.2015, according to which the appeals Date of order: 27.03.2018 ITA No.100036/2016 C/W ITA No.100035/2016The Principal Commissioner of Income Tax VsShri Revansiddeshwar Co-operative Credit Society 5under Section 260A of the Act before HighCourts cannot be filed by the Department, ifthe tax effect is below Rs.20,00,000/-. 4.Learned counsel for the Respondent-Assessee submitted that the tax effect in thepresent cases comes to Rs.14,69,430/- andRs.15,26,030/- respectively for both theassessment years and therefore the presentappeals filed by Revenue are notmaintainable. 5.Learned counsel for the appellant-RevenueMr.Ameet Kumar Deshpande is not able tocontrovert this statement of the learnedcounsel for the respondent-Assessee. 6.In view of the aforesaid CBDT Circular, thepresent appeals filed by the Revenue are heldto be not maintainable and the same are Date of order: 27.03.2018 ITA No.100036/2016 C/W ITA No.100035/2016The Principal Commissioner of Income Tax VsShri Revansiddeshwar Co-operative Credit Society 6 accordingly dismissed as not maintainable. No costs. Sd/- Sd/- JUDGE JUDGE LG