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High Court of KeralaDivision BenchAppeals dismissed

Director of Income Tax (International Taxation), Kochi v. R. Reghu Nadathiin Financiers

Case / Petition Number:ITA Nos.172, 177 & 178 of 2014

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • S. V. Bhatti
  • Viju Abraham Thurday
Judgment Date
2021-09-16
Court Decision / Holding
The appeals are not maintainable; they are dismissed.
Final Disposition
Appeals dismissed

Parties to the Case

Appellants / Petitioners

  • Director of Income Tax (International Taxation), Kochi

Respondents

  • R. Reghu Nadathiin Financiers, Kavanadu P.O., Kollam 691003

Legal Representation & Advocates

Counsels for Petitioners

  • • P. K. R. Menon, Sr. Counsel
  • • Joseph Joseph, SC

Counsels for Respondents

  • • S. Arun Raj

Case Synopsis & Summary

These three connected ITA appeals, ITA Nos. 172, 177 and 178 of 2014, were heard by a Division Bench of the Kerala High Court comprising Justices S. V. Bhatti and Viju Abraham Thurday. The Revenue (Director of Income Tax, International Taxation, Kochi) challenged orders of the Income Tax Appellate Tribunal, Cochin Bench, Ernakulam, relating to assessment years 2004-05 and 2008-09, against Shri R. Reghu Nadathiin Financiers of Kollam. The core issue concerns whether these appeals remain viable in light of the CBDT Circular’s threshold for value or tax implication. The court notes that the value or tax implication in the appeals falls below the limit prescribed by the CBDT Circular, and it relies on the Supreme Court’s decision in SC Naregal v. Commissioner of Income Tax (2019) 418 ITR 455 (SC), which examined the effect of the CBDT Circular in similar circumstances. Applying that decision, the court holds that the current appeals are not maintainable and are dismissed. The decision emphasizes that the CBDT Circular’s threshold, as interpreted by the apex court, governs low-value matters and warrants dismissal of such appeals. Appendices contain annexures A–D filed by the appellant. The judgment is signed by both members of the Division Bench, aligning with the CBDT circular and the Supreme Court precedent.

Provisions of Law Cited

Section 143(3)CBDT Circular

Cited Precedents (1)

Case NameCitationTreatmentExplanation
SC Naregal v. Commissioner of Income Tax418 ITR 455 (SC)PositiveCourt relies on Supreme Court decision to apply CBDT Circular and dismiss such appeals.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE S.V.BHATTI** ## **&** **THE HONOURABLE MR.JUSTICE VIJU ABRAHAM THURSDAY, THE 16[TH] DAY OF SEPTEMBER 2021 / 25TH BHADRA, 1943** **ITA NO. 177 OF 2014** **AGAINST THE ORDER IN ITA 291/Coch/2013 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM** ## **APPELLANT/RESPONDENT:** THE DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION) KOCHI. BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX ## **RESPONDENT/APPELLANT:** R.REGHU NADATHIIL FINANCIERS, KAVANADU P.O., KOLLAM - 691 003. BY ADV SRI.S.ARUN RAJ ## **OTHER PRESENT:** ADV NAVANEETH N NATH FOR JOSE JOSEPH THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 16.09.2021, ALONG WITH ITA.172/2014, 178/2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA Nos.172, 177 & 178 of 2014 2 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE S.V.BHATTI** **&** **THE HONOURABLE MR.JUSTICE VIJU ABRAHAM THURSDAY, THE 16[TH] DAY OF SEPTEMBER 2021 / 25TH BHADRA, 1943** **ITA NO. 172 OF 2014** **AGAINST THE ORDER IN ITA 290/Coch/2013 OF I.T.A.TRIBUNAL,COCHIN** **BENCH, ERNAKULAM** ## **APPELLANT/RESPONDENT:** THE DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION), KOCHI BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX ## **RESPONDENT/Appellant** SHRI. R.REGHU, MADATHIL FINANCIERS KAVANADU P.O, KOLLAM 691 003. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 16.09.2021, ALONG WITH ITA.177 and 178 of 2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA Nos.172, 177 & 178 of 2014 3 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE S.V.BHATTI** **&** **THE HONOURABLE MR.JUSTICE VIJU ABRAHAM THURSDAY, THE 16[TH] DAY OF SEPTEMBER 2021 / 25TH BHADRA, 1943 ITA NO. 178 OF 2014** **AGAINST THE ORDER IN ITA 292/Coch/2013 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM** ## **APPELLANT/RESPONDENT:** THE DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION) KOCHI. BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX ## **RESPONDENT/Appellant:** SHRI.R.REGHU MADATHIL FINANCIERS, KAVANADU P.O., KOLLAM-691003. BY ADV SRI.S.ARUN RAJ THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 16.09.2021, ALONG WITH ITA.177/2014 & 172/2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA Nos.172, 177 & 178 of 2014 4 ## JUDGMENT ## ITA Nos.172, 177 & 178 of 2014 ## S.V.Bhatti, J. The Revenue is the appellant in the appeals. 2. Heard learned Standing counsel Sri Navneeth N.Nath for the appellant and Adv.S.Arunraj for respondent. 3. The value or tax implication in the appeals is less than the limit prescribed by CBDT Circular. The Supreme Court in the judgment reported in _**S.C.Naregal** v_ _**Commissioner of Income Tax**_ (2019) 418 ITR 455 (SC) has considered the effect of CBDT Circular and dismissed the appeal coming within the purport of CBDT Circular. 4. The valuation of the subject appeals, since is less than the limit stipulated by CBDT Circular, and that the judgment of Apex Court in ITA Nos.172, 177 & 178 of 2014 5 _S.C.Naregal_ (supra) is applicable to these appeals as well. By referring to the Supreme Court judgment and the latest circular of CBDT, we are of the view that the appeals are not maintenable, hence dismissed. **Sd/S.V.BHATTI JUDGE** **Sd/-** **VIJU ABRAHAM JUDGE** css/ ITA Nos.172, 177 & 178 of 2014 6 **ITA No.177/2014** ## **APPENDIX** **APPELLANT'S ANNEXURES:** **Ann.A COPY OF ASST.ORDER U/S 143(3) DTD.30.12.2009 FOR THE ASST.YEAR 2004-05.** **ANN.B COPY OF ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) DATED 5.3.2013.** **ANN.C COPY OF ORDER OF ITAT ALONG WITH ONE PHOTOSTAT COPY DTD.31.1.2014.** **ANN.D COPY OF REMAND REPORT DTD.26.4.2011.** ITA Nos.172, 177 & 178 of 2014 7 **ITA No.172/2014** ## **APPENDIX** ## **APPELLANT'S ANNEXURES:** **Ann.A COPY OF ASST.ORDER U/S 143(3) DTD.30.12.2009 FOR THE ASST.YEAR 2008-09. ANN.B COPY OF ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) DATED 5.3.2013.** **ANN.C COPY OF ORDER OF ITAT ALONG WITH ONE PHOTOSTAT COPY DTD.31.1.2014. ANN.D COPY OF REMAND REPORT DTD.26.4.2011 NO.ADGP G 5520K/2010-11.** ITA Nos.172, 177 & 178 of 2014 8 **ITA NO.178/2014** ## **APPENDIX** ## **APPELLANT'S ANNEXURES:** **Ann.A COPY OF ASST.ORDER U/S 143(3) DTD.30.12.2009 FOR THE ASST.YEAR 2008-09.** **ANN.B COPY OF ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) DATED 5.3.2013.** **ANN.C COPY OF ORDER OF ITAT.** **ANN.D COPY OF REMAND REPORT DTD.26.4.2011.**