The Pr Commissioner Of Income Tax And Another vs. The Totgars Co Operative Sale Society Ltd

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ITA/100003/2024HC KarnatakaKAHC02000029202416 February 2026Bench: M.I.ARUN,B. MURALIDHARA PAI3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court noted that the appeal was not maintainable due to the tax effect being below the threshold specified in CBDT Circular No. 09/2024. The appeal was disposed of with liberty to revive.

What were the facts?

The Revenue filed an appeal before the High Court against an ITAT order. The tax effect in the appeal was less than ₹2 Crores.

What were the issues?

Maintainability of the appeal before the High Court due to low tax effect as per CBDT circulars.

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: 2026:KHC-D:2340-DB ITA No. 100003 of 2024

IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 16TH DAY OF FEBRUARY, 2026 PRESENT THE HON'BLE MR. JUSTICE M.I.ARUN AND THE HON'BLE MR. JUSTICE B. MURALIDHARA PAI INCOME TAX APPEAL NO. 100003 OF 2024 BETWEEN:

1.

THE PR. COMMISSIONER OF INCOME–TAX, C. R. BUILDING, NAVANAGAR, HUBBALLI – 580 025.

2.

THE ASST. COMMISSIONER OF INCOME–TAX, CIRCLE–1(1) AND TPS, C.R. BUILDING, NAVANAGAR, HUBBALLI–580 025. … APPELLANTS (BY SRI. M. THIRUMALESH, ADVOCATE)

AND:

THE TOTGARS CO OPERATIVE SALE SOCIETY LTD., APMC YARD, SIRSI, UTTARA KANNADA DISTRICT, PAN AACAT0251D. … RESPONDENT

(BY SRI. RAVI SHANKAR S.V., and SMT. SANJANA S. MUDHOL, ADVS.)

THIS ITA IS FILED UNDER SECTION 260A OF THE INCOME- TAX ACT, 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTION OF LAW AS STATED ABOVE. ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX

Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka, Dharwad Bench, Dharwad

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HC-KAR NC: 2026:KHC-D:2340-DB ITA No. 100003 of 2024

APPELLATE TRIBUNAL, BENGALURU IN ITA NO. 377/Bang/2023 DATED 18.07.2023 FOR ASSESSMENT YEAR 2016-2017 ANNEXURE-A AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1(1) AND TPS, HUBLI AND ETC.,

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

CORAM: THE HON'BLE MR. JUSTICE M.I.ARUN AND THE HON'BLE MR. JUSTICE B. MURALIDHARA PAI

ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE M.I.ARUN)

It is noticed that the tax effect in this appeal is less than ₹2 Crores and therefore, the appeal would not be maintainable 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 Taxes. It is also submitted that the aforesaid Circular binds the revenue.

2.

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

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HC-KAR NC: 2026:KHC-D:2340-DB ITA No. 100003 of 2024

aforesaid Circular dated 17.09.2024 and Circular No.5/2024 dated 15.03.2024.

3.

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.

Sd/- (M.I.ARUN) JUDGE

Sd/- (B. MURALIDHARA PAI) JUDGE

KMS / CT:ASC List No.: 1 Sl No.: 45

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