THE PR. COMMISSIONER OF INCOME- TAX, vs. M/S CONDUENT BUSINESS SERVICES INDIA LLP

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ITA/315/2023HC KarnatakaKAHC01022036202302 April 2025Bench: KRISHNA S DIXIT,RAMACHANDRA D. HUDDAR4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court disposed of the appeal without admitting it, granting the Revenue liberty to revive it if the case falls within the exceptions of the relevant CBDT circulars. The substantial questions of law were kept open.

What were the facts?

The Revenue appealed against an order of the Income-Tax Appellate Tribunal for Assessment Year 2014-2015. The assessee argued that the tax effect was below the threshold specified in CBDT Circular No. 09/2024, making the appeal not maintainable.

What were the issues?

Whether the appeal filed by the Revenue is maintainable in light of the CBDT circulars regarding monetary limits for filing appeals, and whether the substantial questions of law should be decided.

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:13841-DB ITA No. 315 of 2023

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF APRIL, 2025 PRESENT THE HON'BLE MR JUSTICE KRISHNA S DIXIT AND THE HON'BLE MR JUSTICE RAMACHANDRA D. HUDDAR INCOME TAX APPEAL NO. 315 OF 2023 BETWEEN:

1.

THE PR. COMMISSIONER OF INCOME-TAX, 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU-560095

2.

THE ASST. COMMISSIONER OF INCOME TAX CIRCLE-4(2)(1), PRESENT ADDRESS DCIT, CIRCLE - 2(1) (1), 2ND FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU-560095 …APPELLANTS (BY SRI. SUSHAL TIWARI N., ADVOCATE) AND:

M/S. CONDUENT BUSINESS SERVICES INDIA LLP (FORMERLY KNOWN AS XEROX BUSINESS SERVICES INDIA PVT LTD ) UNIT-A, 5TH FLOOR, AVIATOR BUILDING, WHITEFIELD ROAD, ASCENDAS ITPB SEZ INTERNATIONAL TECH PARK, BENGALURU-560066. ….RESPONDENT (BY SMT. JINITA CHATTERJEE, ADVOCATE)

THIS ITA IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING THAT THIS HON'BLE COURT MAY BE PLEASED TO: 1. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE.

Digitally signed by SHAKAMBARI Location: High Court of Karnataka

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NC: 2025:KHC:13841-DB ITA No. 315 of 2023

2.

ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN IT(TP)A NO.3346/BANG/2018 DATED 13.09.2022 FOR ASSESSMENT YEAR 2014-2015 ANNEXURE-D AND CONFIRM THE ORDER OF THE DRP CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2(1)(1), BENGALURU. 3. TO PASS SUCH OTHER SUITABLE ORDERS AS THIS HON'BLE COURT DEEMS FIT TO GRANT IN THE FACTS AND CIRCUMSTANCES OF THE CASE IN THE INTEREST OF JUSTICE AND EQUITY. THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE KRISHNA S DIXIT AND HON'BLE MR JUSTICE RAMACHANDRA D. HUDDAR

ORAL JUDGMENT (PER: HON'BLE MR JUSTICE KRISHNA S DIXIT) Heard the learned counsel Shri.Sushal Tiwari.N., for the Appellants/Revenue and Ms.Jinita Chatterjee, 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 13.09.2022 passed by the

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NC: 2025:KHC:13841-DB ITA No. 315 of 2023

Income-Tax Appellate Tribunal, Bengaluru (for short, ‘Appellate Authority’) in IT(TP)A No.3346/Bang/2018 for the Assessment Year 2014-2015.

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 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.

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NC: 2025:KHC:13841-DB ITA No. 315 of 2023

However, the question of law is kept open to be adjudicated in an appropriate proceeding.

Sd/- (KRISHNA S DIXIT) JUDGE

Sd/- (RAMACHANDRA D. HUDDAR) JUDGE

DH List No.: 1 Sl No.: 18

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