THE COMMISSIONER OF INCOME TAX vs. M/S GOLDMAN SACHS
What did the High Court hold?
The High Court held that the appeal is not maintainable due to the reduced tax effect, referencing a circular that revises monetary limits for appeals. The appeal was disposed of accordingly.
What were the facts?
The Revenue filed an appeal against an ITAT order with a significant tax effect. Subsequently, an agreement between competent authorities reduced the tax effect to less than Rs. 2 Crores.
What were the issues?
Whether an appeal filed by the Revenue is maintainable when the tax effect falls below the revised monetary limit prescribed by a subsequent circular.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
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HC-KAR NC: 2025:KHC:26459-DB ITA No. 40 of 2016 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF JULY, 2025 PRESENT THE HON'BLE MR. JUSTICE S.G.PANDIT AND THE HON'BLE MR. JUSTICE T.M.NADAF INCOME TAX APPEAL NO.40 OF 2016 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX, 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BANGALORE-560095. 2. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-11(3) 2ND FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA BANGALORE-560095. …APPELLANTS (BY SRI. E.I.SANMATHI, ADVOCATE) AND: M/S. GOLDMAN SACHS SERVICES PVT. LTD., CRYSTAL DOWNS, EMBASSY GOLF LINKS BUSINESS PARK, OFF INTERMEDIATE RING ROAD, Digitally signed by SHARADAVANI B Location: High Court of Karnataka
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HC-KAR NC: 2025:KHC:26459-DB ITA No. 40 of 2016 BANGALORE-560071. PAN: AACCG 2435N. …RESPONDENT (BY SMT. MANASA ANANTHAN, ADV. FOR SMT. TANMAYEE RAJKUMAR, ADV.) THE INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:17/07/2015 PASSED IN ITA NO.1685/BANG/2012, FOR THE ASSESSMENT YEAR 2008-2009 ANNEXURE-D, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE ITAT, BENGALURU IN ITA NO. 1685/BANG/2012 DATED:17/07/2015 ANNEXURE-D AND CONFIRM THE ORDER OF THE DRP CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-11(3), BENGALURU AND ETC.
THIS APPEAL, COMING ON FOR ORDERS THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.G.PANDIT and HON'BLE MR. JUSTICE T.M.NADAF
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HC-KAR NC: 2025:KHC:26459-DB ITA No. 40 of 2016 ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE S.G.PANDIT) Heard Sri. E.I.Sanmathi, learned counsel for the appellants and Smt. Manasa Ananthan, learned counsel for Smt. Tanmayee Rajkumar, learned counsel for the respondent. 2. This appeal by Revenue under Section 260A of the Income Tax Act, 1961 (for short 'I.T.Act') is directed against the order passed by the Income Tax Appellate Tribunal, Bangalore in ITA.No.1685/Bang/2012 dated 17.07.2015. As on the date of filing the appeal, the monetary value of the appeal and tax effect is shown as Rs.7,55,24,274/-. 3. It is submitted that subsequent to filing of the appeal, an agreement is entered into between the Competent Authorities and accordingly tax effect has been reduced to Rs.95 Lakhs or less than Rs.2 Crores. The same is not disputed by the learned counsel for the appellant Sri. E.I.Sanmathi. 4. The prayer of the respondent in the memo dated 15.04.2025 is to dispose the appeal as not maintainable in view
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HC-KAR NC: 2025:KHC:26459-DB ITA No. 40 of 2016 of the subsequent event and reduction of tax effect to less than Rs.2 Crores. 5. Circular No.09/2024 dated 17.09.2024 revises the monetary limit for filing appeal by Revenue. Clause 5 of the said Circular reads as follows: "5. The modifications shall come into effect from the date of issue of this Circular. This Circular will apply to SLPs/appeals to be filed henceforth in SC/HCs/Tribunal. It shall also apply to the SLPs/ appeals pending before Supreme Court/High Courts/Tribunal, which may accordingly be withdrawn." 6. A reading of the above makes it clear that the Circular in respect of the monetary limit would apply to the pending appeals before the Hon'ble Supreme Court/High Courts/Tribunal. 7. In view of the above and since the tax effect has been reduced to less than Rs.2 Crores and in view of the
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HC-KAR NC: 2025:KHC:26459-DB ITA No. 40 of 2016 subsequent development, the appeal would not be maintainable. Accordingly, appeal stands disposed off. Sd/- (S.G.PANDIT) JUDGE Sd/- (T.M.NADAF) JUDGE SMJ List No.: 1 Sl No.: 5
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