MSPL LIMITED vs. THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 2(1)

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ITA/20/2025HC KarnatakaKAHC01005271202510 September 2026Bench: S.G.PANDIT,CHILLAKUR SUMALATHA5 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Karnataka held that in view of the subsequent developments, specifically the ITAT's order dated 11.02.2026 allowing the miscellaneous applications and recalling the impugned common order dated 14.08.2024, the appeals filed by the assessee have become infructuous. Consequently, the Court permitted the assessee to withdraw the appeals. The appeals were accordingly dismissed as withdrawn, with liberty reserved to the appellant to seek revival of the appeals before the High Court if necessity arises at a later stage, in accordance with law. No substantial questions of law were decided on merits.

What were the facts?

The assessee, MSPL Limited, filed three appeals (ITA Nos. 18, 19, and 20 of 2025) before the High Court of Karnataka against the orders of the Income Tax Appellate Tribunal (ITAT), Bengaluru Bench. The appeals challenged common orders passed by the ITAT for Assessment Years (AY) 2007-08 and 2008-09. Subsequent to the filing of these appeals, the assessee filed Miscellaneous Applications (M.A. Nos. 56 to 58/Bang/2024) before the ITAT under Section 254(2) of the Income Tax Act, 1961, seeking rectification of apparent mistakes in the impugned orders. The ITAT, by an order dated 11.02.2026, allowed these miscellaneous applications and recalled its common order dated 14.08.2024.

What were the issues?

1. Whether the appeals filed before the High Court have become infructuous and do not survive for consideration, given that the Income Tax Appellate Tribunal has recalled its impugned order dated 14.08.2024 pursuant to allowing Miscellaneous Applications filed by the assessee under Section 254(2) of the Income Tax Act, 1961. Assessee's Contention: The assessee argued that due to the subsequent order of the ITAT dated 11.02.2026, which allowed the miscellaneous applications and recalled the impugned order, the appeals before the High Court have become infructuous. Therefore, the assessee sought permission to withdraw the appeals with liberty to revive them if necessary. The assessee relied on the ITAT's order dated 11.02.2026 in M.A. Nos. 56 to 58/Bang/2024. Revenue's Contention: The judgment does not record any specific contentions from the Revenue regarding the withdrawal of the appeals.

Which sections of the Income-tax Act were involved?

Section 254(2),Section 260-A

AI-generated summary — verify with the full judgment below

HC-KAR IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF SEPTEMBER, 2026 PRESENT THE HON'BLE MR. JUSTICE S.G.PANDIT AND THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA INCOME TAX APPEAL NO. 18 OF 2025 C/W INCOME TAX APPEAL NO. 19 OF 2025 AND INCOME TAX APPEAL NO. 20 OF 2025

BETWEEN:

MSPL LIMITED 117, BADDOTA BHAVAN, (ANNEX), MAHARSHI KARVE ROAD, CHARCH GATE, MUMBAI-400020 PAN: AABCM1040N

A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 AND REP. BY ITS JOINT MANAGING DIRECTOR, MR. RAHUL KUMAR N BALDOTA, S/O MR. NARENDRA KUMAR BALDOTA, AGED ABOUT 57 YEARS OCC: SERVICE, R/AT CHINAR, DAM ROAD, BALDOTA COLONY, HOSPET, BELLARY, KARNATAKA-583203. …APPELLANT (COMMON IN ALL APPEALS)

(BY SRI. J.D. MISTRY, SR. COUNSEL FOR SRI P.D. ANKUR, ADV. (VC & PH))

AND:

THE ASSISTANT COMMISSIONER OF INCOME TAX

Digitally signed by NANJUNDACHARI Location: High Court of Karnataka HC-KAR CENTRAL CIRCLE 2(1) BMTC BUILDING, 80FT ROAD KORAMANGALA BENGALURU-560095. …RESPONDENT (COMMON IN ALL APPEALS)

(BY SRI. RAVI RAJ Y. V., AND SRI M. DILIP, ADVS.)

THESE APPEALS ARE FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, PRAYING TO ALLOW THE APPEAL AND SET- ASIDE THE IMPUGNED ORDER PRONOUNCED ON 14.08.2024 BY B BENCH OF THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU BENCH IN ITA NO.372/BANG/2011 (ANNEXURE-M) FOR 2007-08, ITA NO.373/BANG/2011 (ANNEXURE-M) FOR AY 2007-08 AND ITA NO.374/BANG/2011 (ANNEXURE-M) FOR AY 2008-09 RESPECTIVELY.

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

CORAM: HON'BLE MR. JUSTICE S.G.PANDIT AND HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA

ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE S.G.PANDIT)

Heard learned senior counsel Sri.J.D.Mistry for Sri.P.D.Ankur, learned counsel for the appellant/assessee and learned counsel Sri.Y.V.Ravi Raj for Sri.Dilip.M., learned counsel for the respondent/Revenue.

2.

Learned senior counsel for the appellant would submit that for the present, this Court need not examine HC-KAR the substantial questions of law raised in the appeal and would further submit that the appellant be permitted to withdraw the appeals with liberty to revive the appeals if necessary. Further, learned senior counsel would submit that subsequent to passing of the impugned orders herein, Miscellaneous Applications were filed before the Tribunal and those Miscellaneous Applications were allowed by the ITAT order dated 11.02.2026.

3.

Learned counsel for the appellant on record would also file memo for withdrawal of the appeals. The memo reads as follows: “HEREIN, the memo on behalf of the Appellant is as under:

The Appellant in the top-noted appeal had challenged the common order dated 14.08.2024 passed by the Hon'ble Income Tax Appellate Tribunal ('Tribunal') for Assessment Years ('AY') AY 2006-07 to 2008-09 in ITA No.372 to 374/Bang/2011 (hereinafter referred to as 'impugned order').

HC-KAR Since, the impugned order of the Tribunal disclosed certain mistakes which were apparent from the record, the Appellant filed miscellaneous applications before the Tribunal under section 254(2) of the Act for the AY 2006-07 to 2008-09 in M.A.No.56 to 58/Bang/2024. Given the pendency of the miscellaneous petitions before the Tribunal, this Hon'ble Court was pleased to defer the hearings in the top-noted appeal.

It is submitted that the Tribunal vide order dated 11.02.2026 has allowed the miscellaneous application of the Appellant for AY 2006-07 to 2008-09 in M.A.No.56 to 58/Bang/2024 and has recalled the impugned common order dated 14.08.2024 passed in ITA No.372 to 374/Bang/2011. A true copy of the common order dated 11.02.2026 passed by the Tribunal in M.A.No.56 to 58/Bang/2024 is produced herewith as ANNEXURE-1. Given the same, the prayer of the Appellant in the top noted appeal has become infructuous and does not survive for consideration at the hands of this Hon'ble Court.

In the circumstances, the Appellant seeks leave of this Hon'ble Court to withdraw the top- noted appeal. The Appellant therefore respectfully prays that this Hon'ble Court may be pleased to HC-KAR dismiss the appeal as 'withdrawn' with liberty reserved to the Appellant to seek revival of the appeal before this Hon'ble Court, if necessity arises, at a later stage in accordance with law.”

4.

Memo is placed on record.

5.

In view of the subsequent developments, the appellants are permitted to withdraw the appeals. The appeals are dismissed, with liberty as sought in the memo.

Sd/- (S.G.PANDIT) JUDGE

Sd/- (DR.CHILLAKUR SUMALATHA) JUDGE

NC CT:bms List No.: 1 Sl No.: 15

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