PR COMMISSIONER OF INCOME TAX-3 vs. M/S HERBALIFE INTERNATIONAL INDIA PVT LTD

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ITA/495/2023HC KarnatakaKAHC01037886202311 February 2025Bench: KRISHNA S DIXIT,G BASAVARAJA3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue was not maintainable. The primary reason for this decision was that the amount in dispute fell below the monetary ceiling stipulated in an extant CBDT Circular, which governs the filing of appeals by the Revenue. Consequently, the Court dismissed the appeal on this preliminary ground. The substantial questions of law raised in the appeal memo were not adjudicated upon and were left to be considered in an appropriate proceeding. The Court reserved liberty for the Revenue to seek revival of the appeal if the case falls within the exceptions enumerated in the CBDT Circular. No specific relief was granted to the assessee on the merits of the case, as the appeal was disposed of on procedural grounds.

What were the facts?

The Revenue, represented by the Principal Commissioner of Income Tax-3 and the Deputy Commissioner of Income Tax, filed an appeal before the High Court of Karnataka. The appeal challenged an order dated 29.09.2022 passed by the Income Tax Appellate Tribunal (ITAT), Bengaluru Bench. The ITAT had allowed the assessee's appeal in ITA No. 2067/BANG/2017 for the Assessment Year 2005-06, granting relief to the assessee, M/s Herbalife International India Pvt Ltd. The High Court noted that the appeal memo contained five substantial questions of law. However, the Revenue's appeal was not maintainable due to the amount in dispute falling below the monetary limit prescribed by an extant CBDT Circular.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, given the monetary limit prescribed by the CBDT Circular for filing appeals. The Revenue contended that the appeal raises substantial questions of law and should be heard on merits. The Revenue's argument implicitly suggests that the appeal should be entertained despite the monetary limit, or that the case falls within an exception to the circular. The judgment does not explicitly record the Revenue's specific arguments on the substantial questions of law, as the appeal was disposed of on the preliminary ground of maintainability. The Assessee's contentions are not recorded in the judgment.

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:5987-DB ITA No. 495 of 2023

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH 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. 495 OF 2023 BETWEEN:

1.

PR. COMMISSIONER OF INCOME TAX-3, KORMANGALA, BANGALORE.

2.

THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 11(4), KORMANGALA, BANGALORE. …APPELLANTS (BY SRI. SANMATHI E I.,ADVOCATE)

AND:

M/S HERBALIFE INTERNATIONAL INDIA PVT LTD NO.46/B & 47, 1ST MAIN ROAD, 3RD PHASE, WARD NO.37, J P NAGAR, BANGALORE SOUTH, BANGALORE – 560 078. PAN-AACH8025R AMENDED V.C.O DATED 11.02.2025. …RESPONDENT (BY MISS. MAHIMA GOUD., ADVOCATE FOR SMT. TANMAYEE RAJKUMAR.,ADVOCATE)

THIS ITA / INCOME TAX APPEAL UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 29/09/2022 PASSED IN ITA NO.2068/BANG/2017, FOR THE ASSESSMENT YEAR 2005-2006, PRAYING TO (1) DECIDE THE FOREGOING QUESTION OF LAW AND / OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HONBLE COURT AS DEEMED FIT AND SET ASIDE THE APPELLATE ORDER DATED 29/09/2022 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, BENGALURU, AS SOUGHT FOR, IN THE RESPONDENT-ASSESSEES CASE, IN APPEAL

Digitally signed by LAKSHMINARAYAN N Location: HIGH COURT OF KARNATAKA

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NC: 2025:KHC:5987-DB ITA No. 495 of 2023

PROCEEDINGS IN IT(TP)A NO.2068/BANG/2017 FOR ASSESSMENT YEAR 2005-2006 (ANNEXURE-A) AND GRANT SUCH OTHER RELIEF AS DEEMED FIT, INTEREST OF JUSTICE.

THIS ITA 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 JUDGEMENT

(PER: HON'BLE MR JUSTICE KRISHNA S DIXIT)

In this Appeal by the Revenue, challenge is laid to the Income Tax Appellate Tribunal’s order dated 29.09.2022 whereby Assessee’s Appeal in ITA No.2067/BANG/2017 for the Assessment Year *2005-06 having been favorued, relief has been granted to him. 2. The Appeal Memo has as many as five substantial questions of law However, this Appeal does not lie in view of extant CBDT Circular, the amount in question falling below the ceiling limit. The Appeal is accordingly disposed off, liberty having been reserved to seek its revival if case falls within the exceptions enumerated in the said Circular. *Corrected vide court order dated: 18.11.2025.

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NC: 2025:KHC:5987-DB ITA No. 495 of 2023

The substantial questions of law raised in the Appeal Memo are left to be considered in an appropriate proceeding.

Sd/- (KRISHNA S DIXIT) JUDGE

Sd/- (G BASAVARAJA) JUDGE PMR/Bsv List No.: 1 Sl No.: 2

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