THE PRINCIPAL COMMISSIONER OF INCOME TAX - 4 vs. M/S MICROCHIP TECHNOLOGIES (INDIA) PVT. LTD.

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ITA/203/2022HC KarnatakaKAHC01020633202118 February 2025Bench: KRISHNA S DIXIT,G BASAVARAJA3 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 question of law was kept open.

What were the facts?

The Revenue filed an appeal under Section 260-A of the Income Tax Act against an order of the Income Tax Appellate Tribunal. The assessee argued that the appeal should not be entertained due to the tax effect being less than Rs. 2 Crores, citing a CBDT circular.

What were the issues?

Whether the appeal should be entertained by the High Court given the tax effect and the applicability of CBDT circulars regarding monetary limits for appeals.

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:7191-DB ITA No. 203 of 2022

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH 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. 203 OF 2022 BETWEEN:

1.

THE PRINCIPAL COMMISSIONER OF INCOME TAX - 4, BMTC COMPLEX, KORAMANGALA, BANGALORE.

2.

THE DEPUTY COMMISSIONER INCOME TAX, CIRCLE 12(1), 14/3, 4TH FLOOR, RASTROTHANA BHAVAN, (OPP. RBI), BANGALORE. …APPELLANTS (BY SRI. SANMATHI E.I, ADVOCATE)

AND:

M/S. MICROCHIP TECHNOLOGIES (INDIA) PVT. LTD., NO. 149-B, EPIP I PHASE, INDUSTRIAL AREA, WHITEFIELD, BANGALORE - 569 066. …RESPONDENT (BY SMT. TANMAYEE RAJKUMAR, ADVOCATE)

THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 28/09/2019 PASSED IN IT(TP)A NO.276/ BANG/ 2014, FOR THE ASSESSMENT YEAR 2009-2010. PRAYING TO (A) DECIDE THE FOREGOING QUESTION OF LAW AND / OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON'BLE COURT AS DEEMED FIT.

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

Digitally signed by LAKSHMINARAYAN N Location: High Court of Karnataka

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NC: 2025:KHC:7191-DB ITA No. 203 of 2022

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. Sanmathi E.I., 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 28.09.2019 passed by the Income Tax Appellate Tribunal, ‘B’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA No.276/Bang/2014 for the Assessment Year from 2009-10.

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:7191-DB ITA No. 203 of 2022

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 KA List No.: 1 Sl No.: 3 CT: BHK

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