Karnataka High Court
The Commissioner Of Income Tax vs St George Education And Charitable ... on 9 April, 2013
Bench: N.Kumar, B.Manohar
IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE 9th DAY OF APRIL 2013
PRESENT
THE HON'BLE MR. JUSTICE N.KUMAR
AND
THE HON'BLE MR. JUSTICE B.MANOHAR
I.T.A. NO.170/2007
BETWEEN :
1. The Commissioner of
Income-tax,
C.R.Building,
Queens Road,
Bangalore.
2. The Joint Commissioner
Of Income-Tax,
Range- 16, C.R.Building,
Queens Road,
Bangalore. ...APPELLANTS
(By Sri.M.Thirumalesh, Adv.)
AND :
St.George Education &
Charitable Trust,
4th Cross, III Main,
OMBR Layout,
Banasawadi,
Bangalore - 43. ...RESPONDENT
(By Sri.A.Shankar, Adv. for
Sri.M.Lava, Adv.)
. . . .
-2-
This I.T.A. is filed under Section 260A of the
Income Tax Act, 1961 praying to (i) formulate the
substantial questions of law stated therein, (ii) allow the
appeal and set-aside the order passed by the Income
Tax Appellate Tribunal, Bangalore in I.T.A.
No.172/Bang/2005 dated 11.08.2006 confirming the
order of the Appellate Commissioner and confirm the
order passed by the Joint Commissioner of Income Tax,
Range-16, Bangalore in the interest of justice and
equity.
This I.T.A. coming on for hearing, this day,
N.Kumar J., delivered the following:
JUDGMENT
The Revenue has preferred this appeal challenging the order passed by the Tribunal affirming the order passed by the Appellate Authority, which has cancelled the penalties for the assessment year 2001-2002 under Section 271C and 272A(2)(c) of the Income-Tax Act.
2. The total penalty, which is the subject matter of the appeal is Rs.5,02,731/-. Though it is more than Rs.4,00,000/- as contemplated under Circular No.2/2005, it is less than Rs.10,00,000/- as stipulated in Circular No.3/2011. This Court in Ranka & Ranka's case reported in (2012) 72 DTR 270(Kar.) -3- has held that the benefit of the Circular is available even to persons, who had approached this Court prior to the date of the Circular. In other words, the Circular is retrospective in nature.
3. In the light of the judgment of this Court in the aforesaid case, since the tax effect is less than Rs.10,00,000/-, this appeal is not maintainable. Accordingly, it is dismissed.
Sd/-
JUDGE Sd/-
JUDGE SPS