The appeal was filed by the Revenue before the High Court of Karnataka. Both parties agreed that the tax effect in the appeal was less than two crores.

What were the issues?

The primary issue was the maintainability of the appeal before the High Court based on the tax effect, as per the relevant circular.

PCIT vs Smt Rekha Ganesh | Karnataka High Court 2025

Q: What did the High Court hold?

The High Court held that in view of the circular dated 17.09.2024, the appeal would not be maintainable. Consequently, the appeal was dismissed.

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HC-KAR NC: 2025:KHC:25048-DB ITA No. 33 of 2025

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH 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.33 OF 2025 BETWEEN:

THE PR. COMMISSIONER OF INCOME TAX 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU - 560 095.

THE ASST. COMMISSIONER OF INCOME TAX CIRCLE-1(1), DAVANGERE PRESENT ADDRESS THE INCOME TAX OFFICER, WARD-1, C.R. BUILDING, DEVARAJ URS LAYOUT, C BLOCK, DAVANAGERE - 577 006. …APPELLANTS

(BY SRI. Y V RAVIRAJ & SRI. M DILIP, ADVOCATES)

AND:

SMT. REKHA GANESH NO.22/2-1, SHAMANUR KALLAPPA AND SONS, CHOWKIPET, DAVANGERE - 577 001. PAN: AGDPG 8986E. …RESPONDENT

(BY SRI. S ANNAMALAI, SRI. SUMANTH & SRI. SUDHARSHAN, ADVOCATES)

Digitally signed by MADHUSHREE H Location: High Court of Karnataka

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HC-KAR NC: 2025:KHC:25048-DB ITA No. 33 of 2025

THIS ITA IS FILED UNDER SECTION 260A OF THE INCOME TAX ACT 1961, PRAYING TO i) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE; ii) ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.1275/BANG/2024 DATED 20.09.2024 FOR THE ASSESSMENT YEAR 2015-16 (ANNEXURE-A) AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE INCOME TAX OFFICER, WARD -1, DAVANAGERE; iii) 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 S.G.PANDIT and HON'BLE MR. JUSTICE T.M.NADAF

ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE S.G.PANDIT)

Heard Sri.Y.V.Raviraj and Sri.M.Dilip, learned counsel for the appellants and Sri.S.Annamalai, Sri.Sumanth and Sri.Sudharshan, learned counsel for the respondent. 2. Both the learned counsel appearing for the parties would submit that the tax effect in the above appeal would be less than two crores.

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HC-KAR NC: 2025:KHC:25048-DB ITA No. 33 of 2025

Learned counsel for the respondent would submit that the tax calculated on assessed income of Rs.6,39,09,910/- would be Rs.2,15,24,703/- and if the tax on returned income is deducted, disputed tax would be Rs.1,96,62,491/-. Therefore, he submits that the tax effect would be less than two crores.

Sri.Y.V.Raviraj, learned counsel for the appellants would not dispute the same. 5. In view of the above, in terms of the circular dated 17.09.2024, the appeal would not be maintainable. Accordingly, appeal stands dismissed.

Sd/- (S.G.PANDIT) JUDGE

Sd/- (T.M.NADAF) JUDGE

MH/- List No.: 1 Sl No.: 37

THE PR COMMISSIONER OF INCOME TAX vs. SMT REKHA GANESH

What did the High Court hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

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