THE PR COMMISSIONER OF INCOME TAX vs. M/S I G PETROCHEMICALS LIMITED

ITA/79/2025HC KarnatakaKAHC01021931202512 November 2025Bench: B M SHYAM PRASAD,T.M.NADAF6 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court, in unison with both parties, disposed of the appeals. The Court noted the submission that the appeals were filed pending adjudication before the Apex Court in Diary No.49109/2024, with the understanding that the disposal would not prejudice the appellants in case of a favourable outcome in the Apex Court. The assessee's counsel emphasized that the ITAT had already reconsidered the matter based on prior High Court observations, granting relief. Both parties agreed that the Apex Court would modulate the outcome if the pending petition succeeded. The Court ultimately disposed of the appeals and the application for condonation of delay in ITA No.79/2025. The application for condonation of delay in ITA No.80/2025 had been allowed earlier. No specific issue was left undecided; the appeals were disposed of based on the agreement of the parties and the pending Apex Court proceedings.

What were the facts?

The appeals were filed by the Principal Commissioner of Income Tax and the Deputy Commissioner of Income Tax (Revenue) against M/s I G Petrochemicals Limited (Assessee) for Assessment Year 2006-07. The appeals challenged orders passed by the Income Tax Appellate Tribunal (ITAT). The Revenue sought to set aside the ITAT's order in MP.No.47/BANG/2022 in ITA No.1317/BANG/2018, dated 30.05.2024, and ITA No.1317/BANG/2018, dated 21.01.2022, which had allowed relief to the assessee. The appeals were filed under Section 260A of the Income Tax Act, 1961. The High Court had also allowed the application for condonation of delay in ITA No.80/2025 on 12.08.2025.

What were the issues?

1. Whether the High Court should dispose of the appeals pending adjudication before the Apex Court in Diary No.49109/2024, considering the outcome in related writ petitions and writ appeals, and if so, whether such disposal should prejudice the appellants if the Apex Court rules in their favour? Assessee's Contentions: - The present appeals constitute an abuse of process. - The appeals are untenable because the ITAT reconsidered the miscellaneous petition in light of the High Court's observations, granting relief to the assessee. - The Revenue has not taken steps to ensure the disposal of the Apex Court petition. - If the appellants succeed in the Apex Court, the outcome will be modulated, and it is unlikely the Apex Court will deviate from its decision in Commissioner of Income Tax v. Mahindra & Mahindra Ltd [(2018) 404 ITR 0001 SC]. Revenue's Contentions: - The appeals are filed with proposed substantial questions of law, awaiting the outcome of a pending petition before the Apex Court. - The High Court may dispose of these appeals with an observation that the disposal will not prejudice the appellants if there is a favourable outcome in the Apex Court.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BENGALURU, IN

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HC-KAR NC: 2025:KHC:45932-DB ITA No. 80 of 2025 C/W ITA No. 79 of 2025

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF NOVEMBER, 2025 PRESENT THE HON'BLE MR. JUSTICE B M SHYAM PRASAD AND THE HON'BLE MR. JUSTICE T.M.NADAF INCOME TAX APPEAL NO. 80 OF 2025 C/W INCOME TAX APPEAL NO. 79 OF 2025

IN ITA No. 80/2025

BETWEEN:

THE PR. COMMISSIONER OF INCOME TAX CENTRAL, 3RD FLOOR, C.R. BUILDING, QUEENS ROAD, BENGALURU-560 001.

THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-3(1)(1), PRESENT ADDRESS DCIT, CENTRAL CIRCLE-2(4), 3RD FLOOR, C R BUILDING QUEENS ROAD, BENGALURU-560 001. …APPELLANTS (BY SRI. Y V RAVIRAJ.,ADVOCATE) AND:

M/S I G PETROCHEMICALS LIMITED D-4, JYOTHI COMPLEX, 134/1, INFANTRY ROAD, BENGALURU-560 001.

Digitally Signed by REKHA R Location : High Court of Karnataka

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HC-KAR NC: 2025:KHC:45932-DB ITA No. 80 of 2025 C/W ITA No. 79 of 2025

REP. BY ITS MANAGING DIRECTOR.

…RESPONDENT (BY SRI. S. GANESHAN., SENIOR ADVOCATE A/W SMT. JINITA CHATTERJEE., ADVOCATE FOR SRI. S PARTHASARATHI.,ADVOCATE)

THIS ITA IS FILED UNDER SECTION 260 A OF THE INCOME TAX ACT, 1961, PRAYING TO ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU, IN MP.NO.47/BANG/2022) IN ITA NO.1317/BANG/2018) DATED 30.05.2024 FOR ASSESSMENT YEAR 2006/2007 ANNEXURE A AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(4), BENGALURU.

IN ITA NO. 79/2025

BETWEEN:

THE PR. COMMISSIONER OF INCOME TAX CENTRAL, 3RD FLOOR, C.R. BUILDING, QUEENS ROAD, BENGALURU-560 001.

THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-3(1)(1), PRESENT ADDRESS DCIT, CENTRAL CIRCLE-2(4), 3RD FLOOR, C R BUILDING

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HC-KAR NC: 2025:KHC:45932-DB ITA No. 80 of 2025 C/W ITA No. 79 of 2025

QUEENS ROAD, BENGALURU-560 001.

...APPELLANTS (BY SRI. Y V RAVIRAJ.,ADVOCATE)

AND:

M/S I G PETROCHEMICALS LIMITED D-4, JYOTHI COMPLEX, 134/1, INFANTRY ROAD, BENGALURU-560 001. REP. BY ITS MANAGING DIRECTOR. ...RESPONDENT (BY SRI. S. GANESHAN., SENIOR ADVOCATE A/W SMT. JINITA CHATTERJEE., ADVOCATE FOR SRI. S PARTHASARATHI.,ADVOCATE)

THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING TO ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.1317/BANG/2018, DATED 21.01.2022 FOR ASSESSMENT YEAR 2006-07 ANNEXURE-A AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 2(4) BENGALURU.

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

CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD and HON'BLE MR. JUSTICE T.M.NADAF

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HC-KAR NC: 2025:KHC:45932-DB ITA No. 80 of 2025 C/W ITA No. 79 of 2025

ORAL JUDGMENT

(PER: HON'BLE MR. JUSTICE B M SHYAM PRASAD)

Mr. Y.V. Raviraj, the learned Senior Standing Counsel for the appellants, submits that these appeals are filed with the proposed substantial questions of law because the larger question, with the outcome in writ petition in W.P.No.20579/2022 [T-IT] and in writ appeal in Writ Appeal No.1373/2023 [I- IT], is pending adjudication before the Apex Court in Diary No.49109/2024 and that this Court may dispose of these appeals as also the application filed for condonation of delay in ITA No.79/2025 with the observation that this disposal will not prejudice the appellants in the event there is a favourable outcome in the pending petition with the Apex Court.

Mr. S. Ganeshan, the learned Senior Counsel for the respondent, submits that this Court must observe that the present appeals must constitute abuse of process and that these appeals are

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HC-KAR NC: 2025:KHC:45932-DB ITA No. 80 of 2025 C/W ITA No. 79 of 2025

untenable even otherwise because, after the orders of the writ Court in W.P.No.20579/2022 [T-IT], the Tribunal has reconsidered the miscellaneous petition in No.47/Bang/2022 in the light of the observations by this Court, which allows the relief to the assessee. The learned Senior Counsel emphasizes that though a reference to the petition in Dairy No.49109/2024 is now being made, the appellants cannot dispute that the Revenue has not taken any measure to ensure that the petition is disposed of.

However, ultimately it is submitted in unison that if the appellants succeed in the petition, the Apex Court will modulate the outcome with Mr.S.Ganeshan emphasizing that it would be very unlikely that the Apex Court will, in view of its decision in Commissioner of Income Tax v. Mahindra & Mahindra Ltd [reported in (2018) 404 ITR 0001 SC]. In the light of this submission, the appeals are disposed of and the application for

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HC-KAR NC: 2025:KHC:45932-DB ITA No. 80 of 2025 C/W ITA No. 79 of 2025

condonation of delay in ITA No.79/2025 stands disposed of. The application for condonation of delay in ITA No.80/2025 has been allowed by this Court on 12.08.2025.

Sd/- (B M SHYAM PRASAD) JUDGE

Sd/- (T.M.NADAF) JUDGE

SA ct:sr

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