THE PR COMMISSIONER OF INCOME TAX, vs. SHRI RAMESH RAMACHANDRA RAO,

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ITA/82/2024HC KarnatakaKAHC01005916202403 February 2025Bench: KRISHNA S DIXIT,G BASAVARAJA3 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court disposed of the appeal without admitting it. The Court granted the Revenue the liberty to revive the appeal as prayed for by its counsel. The question of law was expressly kept open to be adjudicated in an appropriate proceeding. The decision was based on the submissions made by both parties concerning the tax effect and the applicability of the CBDT circulars. No specific findings were made on the merits of the case or the substantive issues that led to the Tribunal's order.

What were the facts?

The Revenue, comprising the Principal Commissioner of Income Tax and the Assistant Commissioner of Income Tax, has filed an appeal under Section 260-A of the Income Tax Act, 1961. The appeal challenges an order dated February 14, 2022, passed by the Income Tax Appellate Tribunal, 'A' Bench, Bengaluru. This order pertains to ITA Nos. 161/Bang/2021 for Assessment Years 2009-10 to 2012-13. The assessee is Shri Ramesh Ramachandra Rao. The appeal was filed on February 3, 2025, before the High Court of Karnataka.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of CBDT Circular No. 09/2024 dated 17.09.2024, given that the tax effect is less than Rs. 2 Crores. Assessee's Contention: The assessee argues that the appeal should not be entertained by the High Court as the tax effect is below the threshold stipulated in CBDT Circular No. 09/2024, and this circular is binding on the Revenue. Revenue's Contention: The Revenue seeks liberty to revive the appeal if the matter falls within the exceptions provided in Circular No. 09/2024 and Circular No. 5/2024 dated 15.03.2024.

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:4791-DB ITA No. 82 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD 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.82 OF 2024 BETWEEN:

1.

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

2.

THE ASST. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 1(1), PRESENT ADDRESS THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 3(1)(1),2ND FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU – 560 095. …APPELLANTS (BY SRI. SUSHAL TIWARI N, ADVOCATE)

AND:

SHRI. RAMESH RAMACHANDRA RAO, NO.98, SATHYANARAYANA LAYOUT, 3RD STAGE, 4TH BLOCK, BASAVESHWAR NAGAR, BENGALURU – 560 079.PAN NO. ADFPF 5086H. …RESPONDENT (BY SMT. TANMAYEE RAJKUMAR, ADVOCATE)

THIS INCOME TAX APPEAL HAS FILED UNDER SEC.260- A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 14/02/2022 PASSED IN ITA NO. 161 /BANG/2021, FOR THE ASSESSMENT YEAR 2012-2013. PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND ETC.,

Digitally signed by LAKSHMINARAYAN N Location: High Court of Karnataka

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NC: 2025:KHC:4791-DB ITA No. 82 of 2024

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

CORAM: HON'BLE MR JUSTICE KRISHNA S DIXIT AND HON'BLE MR JUSTICE G BASAVARAJA

ORAL JUDGMENT (PER: HON'BLE MR JUSTICE KRISHNA S DIXIT) Heard the learned counsel Sri. Sushal Tiwari for the Appellants/Revenue and Smt. Tanmayee Rajkumar, learned counsel for the Respondent/Assessee.

2.

The Revenue is in appeal under Section 260-A of the Income Tax Act, 1961 questioning the correctness and legality of order dated 14.02.2022 passed by the Income Tax Appellate Tribunal, ‘A’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA Nos.161/Bang/2021 for the Assessment Years from 2009 - 10 to 2012-13.

3.

Learned counsel for the assessee submits that the tax effect in this Appeal is less than Rs.2 Crores and therefore, the appeal should not be entertained at the instance of the Revenue in view of the Circular No.09/2024 dated 17.09.2024 issued by the Central Board of Direct

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NC: 2025:KHC:4791-DB ITA No. 82 of 2024

Taxes. It is also submitted that the aforesaid Circular binds the Revenue.

4.

On the other hand, learned counsel for the Revenue submits that he be granted liberty to revive the Appeal in case the matter falls within the exceptions under the aforesaid Circular dated 17.09.2024 and Circular No.5/2024 dated 15.03.2024.

In view of the aforesaid submissions, the Appeal is disposed off with liberty as prayed for by the learned counsel for the Revenue, without admitting the Appeal However, the question of law is kept open to be adjudicated in an appropriate proceeding.

Sd/- (KRISHNA S DIXIT) JUDGE

Sd/- (G BASAVARAJA) JUDGE DR/Bsv List No.: 1 Sl No.: 11

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