PR. COMMISSIONER OF INCOME TAX vs. M/S IZMO LTD

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ITA/7/2021HC KarnatakaKAHC01038581202010 September 2026Bench: S.G.PANDIT,CHILLAKUR SUMALATHA4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeals were not maintainable. The Court referred to Circular No. 09/2024 dated September 17, 2024, issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, which enhanced the monetary limit for filing appeals before the High Court to Rs. 2,00,00,000/-. The Court noted that this circular would also apply to pending appeals. Consequently, the appeals were dismissed on the grounds of not being maintainable due to the tax effect being less than the revised limit. However, liberty was granted to the appellants to seek revival of the appeals if any exceptions to the circular were made out. No decision was made on the merits of the original dispute.

What were the facts?

The appeals were filed by the Principal Commissioner of Income Tax and the Deputy Commissioner of Income Tax against the orders of the Income Tax Appellate Tribunal (ITAT). ITA No. 8 of 2021 pertains to Assessment Year 2011-2012, arising from ITAT's order in IT(TP)A No. 186/Bang/2016. ITA No. 7 of 2021 relates to Assessment Year 2010-2011, arising from ITAT's order in IT(TP)A No. 453/Bang/2015. The respondent in both appeals is M/s. Izmo Ltd. The appeals were filed under Section 260-A of the Income Tax Act, 1961, challenging the ITAT's appellate orders dated January 29, 2020.

What were the issues?

1. Whether the appeals are maintainable in light of the revised monetary limits for filing appeals before the High Court as per Circular No. 09/2024 dated September 17, 2024? (Question of law) The appellants (Revenue) contended that the appeals were filed under Section 260-A of the Income Tax Act, 1961, challenging the ITAT's orders. The respondent (assessee) was M/s. Izmo Ltd. The core issue that arose for consideration was the maintainability of these appeals given the enhanced monetary limit for filing appeals before the High Court. The Revenue relied on Circular No. 09/2024, which increased the monetary threshold to Rs. 2,00,00,000/- for filing appeals before the High Court, and stated that this circular applies to pending appeals as well. No specific arguments were recorded from the assessee's side regarding the maintainability.

Which sections of the Income-tax Act were involved?

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. 8 OF 2021 C/W INCOME TAX APPEAL NO. 7 OF 2021

IN ITA NO. 8/2021

BETWEEN:

1.

PR. COMMISSIONER OF INCOME TAX-3 BMTC COMPLEX KORAMANGALA, BANGALORE.

2.

THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE -3(1) (1) BENGALURU. …APPELLANTS (BY SRI. SANMATHI E. I., ADV. A/W SRI DILIP M., ADV.)

AND:

M/S. IZMO LTD (FORMERLY LOGIX MICROSYSTEMS LTD) NO.177/2C, BILEKAHALLI INDUSTRIAL AREA BANNERGHATTA ROAD, BANGALORE -560076 PAN:AAACL3000E …RESPONDENT (BY SRI. TATA KRISHNA, ADV.)

Digitally signed by NANJUNDACHARI Location: High Court of Karnataka HC-KAR THIS APPEAL IS UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 29/01/2020 PASSED IN IT(TP)A NO.186/BANG/2016, FOR THE ASSESSMENT YEAR 2011-2012, PRAYING THIS 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 AND (2) SET ASIDE THE APPELLATE ORDER DATED 29/01/2020 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, B BENCH, BENGALURU, AS SOUGHT FOR, IN THE RESPONDENT-ASSESSEE'S CASE, IN APPEAL PROCEEDINGS NO. IT(TP)A NO.186/BANG/2016 (ANNEXURE-A) FOR ASSESSMENT YEAR 2011-2012 AND GRANT SUCH OTHER RELIEF AS DEEMED FIT, INTEREST OF JUSTICE.

IN ITA NO. 7/2021

BETWEEN:

1.

PR. COMMISSIONER OF INCOME TAX-3 BMTC COMPLEX KORAMANGALA, BANGALORE.

2.

THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-3 (1) (1) BENGALURU. ...APPELLANTS (BY SRI. SANMATHI E. I., ADV. A/W SRI DILIP M., ADV.)

AND:

M/S. IZMO LTD (FORMERLY LOGIX MICROSYSTEMS LTD) NO.177/2C, BILEKAHALLI INDUSTRIAL AREA BANNERGHATTA ROAD, BANGALORE-560076 PAN-AAACL3000E ...RESPONDENT (BY SRI. TATA KRISHNA, ADV.)

HC-KAR THIS APPEAL IS UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 29/01/2020 PASSED IN IT(TP)A NO.453/BANG/2015, FOR THE ASSESSMENT YEAR 2010-2011, 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 AND (2) SET ASIDE THE APPELLATE ORDER DATED 29/01/2020 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, ‘B’ BENCH, BENGALURU, AS SOUGHT FOR, IN THE RESPONDENT-ASSESSEE'S CASE, IN APPEAL PROCEEDINGS NO. IT(TP)A NO. 453/BANG/2015 (ANNEXURE-A) FOR ASSESSMENT YEAR 2010-11 AND GRANT SUCH OTHER RELIEF AS DEEMED FIT, INTEREST OF JUSTICE.

THESE APPEALS, COMING ON FOR FINAL HEARING, 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 counsel Sri.Sanmathi.E.I., along with Sri.Dilip.M., learned counsel for appellants and learned counsel Sri.Tata Krishna for respondent. Perused the entire appeal papers.

2.

It is pointed out that the tax effect in the above appeals are less than Rs.2,00,00,000/-. Under Circular No.09/2024 dated 17.09.2024, the Ministry of Finance, HC-KAR Department of Revenue, Central Board of Direct Taxes has enhanced the Monetary Limit to file appeals before the High Court to Rs.2,00,00,000/-. The said circular would apply even to pending appeals also.

3.

In the light of the above, the appeals are dismissed as not maintainable. However, liberty is granted to the appellants to seek revival of the appeal, if any exceptions are made out.

Sd/- (S.G.PANDIT) JUDGE

Sd/- (DR.CHILLAKUR SUMALATHA) JUDGE

NC CT:bms List No.: 1 Sl No.: 25

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