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

PDF · subscribers
ITA/83/2024HC KarnatakaKAHC01005913202408 January 2025Bench: KRISHNA S DIXIT,G BASAVARAJA3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the appeal in terms of the submissions made by the learned counsel for the revenue, granting liberty to revive the appeal if the matter falls within the exceptions under CBDT Circular No. 09/2024 and Circular No. 5/2024. The question of law was kept open to be adjudicated in an appropriate proceeding. The operative direction is to dispose of the appeal with liberty as prayed for by the revenue, and the question of law remains undecided. Costs were made easy.

What were the facts?

This is an appeal filed by the Revenue (Principal Commissioner of Income Tax and Assistant Commissioner of Income Tax) against an order dated 14/02/2022 passed by the Income Tax Appellate Tribunal (ITAT), Bengaluru, in ITA No. 158/Bang/2021. The appeal pertains to Assessment Year 2009-2010. The Revenue seeks to set aside the ITAT's order and confirm the orders of the Appellate Commissioner and the Deputy Commissioner of Income Tax. The respondent is Shri. Ramesh Ramachandra Rao. The High Court notes that the subject matter is substantially similar to another appeal (ITA No.154/2020) concerning the monetary limit for maintaining an appeal.

What were the issues?

1. Whether the appeal should be entertained at the instance of the revenue in view of CBDT Circular No. 09/2024 dated 17.09.2024, which stipulates a monetary limit for maintaining appeals, given that the tax effect in this appeal is less than Rs. 2 Crores? Assessee's contention: The appeal should not be entertained as the tax effect is below the threshold specified in CBDT Circular No. 09/2024, and this circular binds the revenue. Revenue's contention: Liberty should be granted to revive the appeal if the matter falls within the exceptions provided in CBDT 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

- 1 -

NC: 2025:KHC:494-DB ITA No. 83 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF JANUARY, 2025 PRESENT THE HON'BLE MR JUSTICE KRISHNA S DIXIT AND THE HON'BLE MR JUSTICE G BASAVARAJA INCOME TAX APPEAL NO. 83 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 (RESPONDENT SERVED AND UNREPRESENTED)

THIS ITA / INCOME TAX APPEAL UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 14/02/2022 PASSED IN ITA NO.158 /BANG/2021, FOR THE ASSESSMENT YEAR 2009-2010, PRAYING TO I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND II. ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT, BENGALURU IN ITA

Digitally signed by SHARADA VANI B Location: HIGH COURT OF KARNATAKA

- 2 -

NC: 2025:KHC:494-DB ITA No. 83 of 2024

NO.158/BANG/2021 DATED 14/02/2022 FOR ASSESSMENT YEAR 2009-2010 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 AND ETC.

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

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

ORAL JUDGEMENT

(PER: HON'BLE MR JUSTICE KRISHNA S DIXIT)

The subject matter of this appeal is substantially similar to the one in ITA No.154/2020 between THE PR. COMMISSIONER OF INCOME TAX vs. 24/7 CUSTOMER PVT LTD, heard & disposed off by a Coordinate Bench of this Court vide order dated 27.9.2024 so far as monetary limit for maintaining the appeal is concerned. 2. At paragraph Nos.4, 5 & 6, the Coordinate Bench has observed as under: “4. 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

- 3 -

NC: 2025:KHC:494-DB ITA No. 83 of 2024

revenue in view of the Circular No.09/2024 dated 17.09.2024 issued by the Central Board of Direct Taxes. It is also submitted that the aforesaid Circular binds the revenue. 5. 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. 6. In view of the aforesaid submissions, the appeal is disposed of with liberty as prayed for by the learned counsel for the revenue. However, the question of law is kept open to be adjudicated in an appropriate proceeding.

In view of the above, this appeal is also accordingly disposed off. Costs made easy.

Sd/- (KRISHNA S DIXIT) JUDGE

Sd/- (G BASAVARAJA) JUDGE

cbc List No.: 1 Sl No.: 32

More judgments on Section 260-A

All 2,570 judgments and leading authorities on Section 260-A →

Latest GST High Court judgments

Search GST case law →