THE PR. COMMISSIONER OF INCOME TAX vs. MR. P. NARASIMHA RAO

ITA/623/2023HC KarnatakaKAHC01053574202316 July 2025Bench: S.G.PANDIT,T.M.NADAF4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeals were not maintainable. This decision was based on Circular No. 9/2024 dated 17.09.2024, which enhanced the monetary limit for filing appeals to Rs.2 crores. Clause (5) of this circular states its applicability to pending appeals before the Supreme Court, High Court, and Tribunal. Since the revised monetary value of the appeals (Rs.1,12,17,045/-) was less than the Rs.2 crores limit, the appeals were deemed not maintainable. Consequently, the appeals were disposed of on this procedural ground without delving into the merits of the case.

What were the facts?

The appeals were filed by the Principal Commissioner of Income Tax and the Deputy Commissioner of Income Tax against orders of the Income Tax Appellate Tribunal. The respondent is Mr. P. Narasimha Rao. The assessment year in question is 2012-2013. The appeals challenge the Tribunal's orders dated 01.12.2023 (in ITA No. 840/BANG/2022) and 26.05.2023 (also in ITA No. 840/BANG/2022). The respondent's counsel pointed out that the tax effect in the appeals was Rs.1,12,17,045/-, not Rs.2,24,74,149/- as stated in the appeal memo. The appellants' counsel did not dispute this revised tax effect.

What were the issues?

1. Whether the appeals are maintainable in light of the revised tax effect and the prevailing monetary limits for filing appeals under Section 260A of the Income Tax Act, 1961? Assessee's contention: The respondent (assessee) argued that the tax effect was Rs.1,12,17,045/-, which is below the enhanced monetary limit for filing appeals. Revenue's contention: The appellants (revenue) did not dispute the revised tax effect as presented by the respondent.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

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HC-KAR NC: 2025:KHC:26351-DB ITA No. 249 of 2024 C/W ITA No. 623 of 2023

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF JULY, 2025 PRESENT THE HON'BLE MR. JUSTICE S.G.PANDIT AND THE HON'BLE MR. JUSTICE T.M.NADAF INCOME TAX APPEAL NO.249 OF 2024 C/W INCOME TAX APPEAL NO.623 OF 2023

IN ITA No.249/2024:

BETWEEN:

THE PR. COMMISSIONER OF INCOME TAX, CENTRAL, GROUND FLOOR, PUNDALIK NIWAS BUILDING, RUA-DE-AUREM, PANAJI, GOA-403 001.

THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1(1) AND TPS, C R BUILDING, ATTAVARA, MANGALURU-575 001. …APPELLANTS (BY SRI. DILIP M, ADVOCATE)

AND:

MR. P. NARASIMHA RAO SHIVAPRASAD, NAGAKANNIKA TEMPLE ROAD, DEREBAIL KONCHADI, MANGALURU-575 006. …RESPONDENT (BY SRI. RAVI SHANKAR S.V, ADVOCATE)

Digitally signed by MADHUSHREE H Location: High Court of Karnataka

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HC-KAR NC: 2025:KHC:26351-DB ITA No. 249 of 2024 C/W ITA No. 623 of 2023

THIS ITA IS FILED UNDER SECTION 260A OF THE INCOME TAX ACT, 1961, PRAYING TO I) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE, II) ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU M.P. NO. 222/BANG/2023 (IN ITA NO. 840/BANG/2022) DATED 01.12.2023 FOR ASSESSMENT YEAR 2012-2013 ANNEXURE-A AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1) AND TPS, MANGALURU.

IN ITA NO.623/2023:

BETWEEN:

THE PR. COMMISSIONER OF INCOME TAX, CENTRAL, 3RD FLOOR, C R BUILDING, QUEEN’S ROAD, BENGALURU.

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1(1) AND TPS, C R BUILDING, ATTAVARA, MANGALURU – 575 001. ...APPELLANTS (BY SRI. DILIP M, ADVOCATE)

AND:

MR. P. NARASIMHA RAO SHIVAPRASAD, NAGAKANNIKA TEMPLE ROAD, DEREBAIL KONCHADI, MANGALURU - 575 006. ...RESPONDENT (BY SRI. RAVI SHANKAR S. V, ADVOCATE)

THIS ITA IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, PRAYING TO i) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN; ii)

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HC-KAR NC: 2025:KHC:26351-DB ITA No. 249 of 2024 C/W ITA No. 623 of 2023

ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO. 840/BANG/2022 DATED 26/05/2023 FOR ASSESSMENT YEAR 2012-2013 ANNEXURE-A AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1), AND TPS, MANGALURU.

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

CORAM: HON'BLE MR. JUSTICE S.G.PANDIT and HON'BLE MR. JUSTICE T.M.NADAF

ORAL JUDGMENT

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

Heard Sri.Dilip M., learned counsel for the appellants and Sri.Ravi Shankar S.V., learned counsel for the respondent and perused the entire appeal papers.

At the outset, learned counsel for the respondent submits that the tax effect in the above appeal is Rs.1,12,17,045/- and not Rs.2,24,74,149/- as stated in the appeal memo.

Learned counsel for the respondent would invite attention of this Court to page No.47 of the appeal memo

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HC-KAR NC: 2025:KHC:26351-DB ITA No. 249 of 2024 C/W ITA No. 623 of 2023

i.e., assessment order and points out that tax effect is only 1,12,17,045/-. 4. Sri.Dilip M., learned counsel for the appellants would not dispute the same.

Under circular No.9/2024 dated 17.09.2024, the monetary limit of filing appeal is enhanced to Rs.2 crores. Clause (5) of the said circular would state that circular would be applicable to pending appeals before the Supreme Court/High Court/Tribunal.

In view of the above, since the monetary value of the above appeals is less than Rs.2 crores, the appeals are not maintainable and accordingly, stands disposed of.

Sd/- (S.G.PANDIT) JUDGE

Sd/- (T.M.NADAF) JUDGE

MH/- List No.: 1 Sl No.: 40

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