THE PR COMMISSIONER OF INCOME TAX vs. M/S HEMAVATHY POWER AND LIGHT PVT LTD

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ITA/592/2023HC KarnatakaKAHC01049176202316 December 2024Bench: V KAMESWAR RAO,S RACHAIAH3 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court noted the submission by the respondent (assessee) that the tax effect in the appeal was less than Rs. 2.00 Crores, making it non-maintainable as per the CBDT Circular dated 17.09.2024. The appellant (Revenue) argued that the issue might fall under exceptions in Circular No. 5/2024 dated 15.03.2024 and sought liberty to revive the appeal if that were the case. The Court accepted this request and ordered the appeal to be closed, with liberty to the Revenue to revive it if the conditions of the exception were met. No decision was made on the merits of the ITAT's order.

What were the facts?

This is an appeal filed by the Revenue (Principal Commissioner of Income Tax and Deputy Commissioner of Income Tax) against an order of the Income-Tax Appellate Tribunal (ITAT), Bengaluru, dated June 23, 2022, for Assessment Year 2013-2014. The Revenue is challenging the ITAT's decision, seeking to set it aside and confirm the order of the Appellate Commissioner, which in turn had confirmed the order of the Deputy Commissioner of Income Tax. The assessee is M/s. Hemavathy Power and Light Pvt Ltd. The appeal is filed under Section 260-A of the Income Tax Act, 1961.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in view of the tax effect being less than Rs. 2.00 Crores, as per CBDT Circular dated 17.09.2024? (Question of law) Contentions: Assessee: Argued that the appeal is not maintainable due to the tax effect being below the threshold stipulated in the CBDT Circular dated 17.09.2024. Relied on CBDT Circular No. 5/2024 dated 15.03.2024. Revenue: Contended that the issue involved in the appeal might fall within the exceptions carved out in Circular No. 5/2024 dated 15.03.2024. Requested liberty to revive the appeal if it falls within such exceptions.

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: 2024:KHC:51751-DB ITA No. 592 of 2023

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF DECEMBER, 2024 PRESENT THE HON'BLE MR JUSTICE V KAMESWAR RAO AND THE HON'BLE MR JUSTICE S RACHAIAH INCOME TAX APPEAL NO. 592 OF 2023 BETWEEN:

1.

THE PR. COMMISSIONER OF INCOME TAX 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU – 560 095.

2.

THE DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE-11(4)/ CIRCLE-3(1)(2)/ CIRCLE-3(1)(3)/ CIRCLE-3(1)(1) PRESENT ADDRESS DCIT CIRCLE-3(1)(1), 2ND FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA BENGALURU – 560 095.

…APPELLANTS (BY SRI. RAVI RAJ, ADVOCATE FOR SRI. DILIP M, ADVOCATE)

AND:

M/S. HEMAVATHY POWER AND LIGHT PVT LTD SUIT NO 701 AND 702, 7TH FLOOR, PRESTIGE MERIDIAN II M.G. ROAD, BENGALURU – 560 001. PAN: AABCH1245E.

…RESPONDENT (BY SRI. A SHANKAR, SENIOR COUNSEL FOR SRI. MADHUSUDHAN A, ADVOCATE)

Digitally signed by NARAYANA UMA Location: HIGH COURT OF KARNATAKA

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NC: 2024:KHC:51751-DB ITA No. 592 of 2023

THIS ITA IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING TO SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO. 2718/BANG/2018 DATED 23.06.2022 FOR ASSESSMENT YEAR 2013-2014 ANNEXURE-A AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(1)(1), BENGALURU.

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

CORAM: HON'BLE MR JUSTICE V KAMESWAR RAO and HON'BLE MR JUSTICE S RACHAIAH

ORAL JUDGMENT (PER: HON'BLE MR JUSTICE V KAMESWAR RAO)

1.

Mr.A.Shankar, learned Senior Counsel appearing for the respondent states that as the tax effect in this appeal is less than Rs.2.00 Crores and in view of the circular issued by the Department of Revenue, Central Board of Direct Taxes dated 17.09.2024, this appeal shall not be maintainable.

2.

Learned counsel for the appellants states that it appears that the issue which arises for consideration shall fall in the exception carved out in the Circular No.5/2024 dated 15.03.2024. He states that the appeal be closed by granting liberty to the revenue, in the eventuality the appeal falls within

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NC: 2024:KHC:51751-DB ITA No. 592 of 2023

the exception as carved out in the Circular dated 15.03.2024, the revenue / appellants to revive this appeal. It is ordered accordingly.

Appeal is closed.

Pending I.A. does not survive for consideration and the same is also disposed of.

Sd/- (V KAMESWAR RAO) JUDGE

Sd/- (S RACHAIAH) JUDGE

UN List No.: 1 Sl No.: 21

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