PR. COMMISSIONER OF INCOME TAX-2 vs. M/S HARMAN CONNECTED SERVICES CORORATION PRIVATE LTD

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ITA/199/2022HC KarnatakaKAHC01018310202113 February 2025Bench: KRISHNA S DIXIT,G BASAVARAJA3 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court disposed of the appeal without admitting it. The Court took note of the assessee's submission regarding the tax effect being less than Rs. 2 Crores and the applicability of CBDT Circular No. 09/2024. The Revenue's counsel sought liberty to revive the appeal if exceptions under the circulars applied. Consequently, the appeal was disposed of with liberty granted to the Revenue as prayed for. The question of law was kept open to be adjudicated in an appropriate proceeding. No decision was made on the merits of the case.

What were the facts?

The Revenue, represented by the Pr. Commissioner of Income Tax-2 and the Additional Commissioner of Income Tax, has filed an appeal under Section 260-A of the Income Tax Act, 1961. The appeal challenges an order dated 12.02.2020 passed by the Income-Tax Appellate Tribunal, 'A' Bench, Bengaluru, in IT(TP)A No.248/Bang/2014. The assessment year in question is 2009-2010. The assessee is M/s. Harman Connected Services Corporation Private Ltd. The appeal was filed for admission before the High Court of Karnataka.

What were the issues?

1. Whether the High Court should entertain an appeal filed by the Revenue when the tax effect is less than Rs. 2 Crores, in light of CBDT Circular No. 09/2024 dated 17.09.2024? Assessee's contention: The assessee argued that the appeal should not be entertained as the tax effect is below Rs. 2 Crores, and the aforementioned CBDT Circular binds the Revenue. The assessee relied on CBDT Circular No. 09/2024. Revenue's contention: The Revenue requested liberty to revive the appeal if the matter falls within the exceptions provided in Circular No. 09/2024 and Circular No. 5/2024 dated 15.03.2024.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

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NC: 2025:KHC:6418-DB ITA No. 199 of 2022

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF FEBRUARY, 2025 PRESENT THE HON'BLE MR JUSTICE KRISHNA S DIXIT AND THE HON'BLE MR JUSTICE G BASAVARAJA INCOME TAX APPEAL NO. 199 OF 2022 BETWEEN:

1.

PR. COMMISSIONER OF INCOME TAX-2, BMTC COMPLEX, KORAMANGALA, BANGALORE.

2.

THE ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE -12, BENGALURU. …APPELLANTS (BY SRI. SANMATHI E I., ADVOCATE)

AND:

M/S. HARMAN CONNECTED SERVICES CORPORATION PRIVATE LTD., (FORMERLY KNOWN AS CORE OBJECTS INDIA PVT LTD.,) PLOT NO.3 AND 3A, EOIZ INDUSTRIAL AREA, SURVEY NO. 55,56 SADARMANGALA VILLAGE, KRISHNARAJAPURAM HOBLI,BANGALORE – 66. …RESPONDENT (BY SRI. MANASA ANANTHAN, ADVOCATE FOR SRI. TANMAYEE RAJKUMAR, ADVOCATE)

THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 12/02/2020 PASSED IN IT(TP)A NO.248/BANG/2014, FOR THE ASSESSMENT YEAR 2009-2010. PRAYING TO (1) DECIDE THE FOREGOING QUESTION OF LAW AND / OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON'BLE COURT AS DEEMED FIT.

Digitally signed by LAKSHMINARAYAN N Location: High Court of Karnataka

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NC: 2025:KHC:6418-DB ITA No. 199 of 2022

THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR JUSTICE KRISHNA S DIXIT AND HON'BLE MR JUSTICE G BASAVARAJA

ORAL JUDGMENT (PER: HON'BLE MR JUSTICE KRISHNA S DIXIT) Heard the learned counsel Shri.Sanmathi.E.I., for the Appellants/Revenue and Ms.Tanmayee Rajkumar, learned counsel for the Respondent/Assessee.

2.

The Revenue is in appeal under Section 260-A of the Income Tax Act, 1961 questioning the correctness and legality of order dated 12.02.2020 passed by the Income-Tax Appellate Tribunal, ‘A’ Bench, Bengaluru (for short, ‘Appellate Authority’) in IT(TP)A No.248/Bang/2014 for the Assessment Year 2009-2010.

3.

Learned counsel for the assessee submits that the tax effect in this Appeal is less than Rs.2 Crores and therefore, the appeal should not be entertained at the instance of the Revenue in view of the Circular No.09/2024

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NC: 2025:KHC:6418-DB ITA No. 199 of 2022

dated 17.09.2024 issued by the Central Board of Direct Taxes. It is also submitted that the aforesaid Circular binds the Revenue.

4.

On the other hand, learned counsel for the Revenue submits that he be granted liberty to revive the Appeal in case the matter falls within the exceptions under the aforesaid Circular dated 17.09.2024 and Circular No.5/2024 dated 15.03.2024.

In view of the aforesaid submissions, the Appeal is disposed off with liberty as prayed for by the learned counsel for the Revenue, without admitting the Appeal. However, the question of law is kept open to be adjudicated in an appropriate proceeding.

Sd/- (KRISHNA S DIXIT) JUDGE

Sd/- (G BASAVARAJA) JUDGE

DH List No.: 1 Sl No.: 25, CT:SNN

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