What did the High Court hold?

The High Court held that the appeal was not maintainable at the instance of the revenue 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.

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

What were the issues?

Maintainability of the appeal by the revenue before the High Court in light of the monetary limit prescribed by CBDT circulars.

PCIT vs Shri J M Vrushabendraiah | Karnataka High Court 2025

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HC-KAR NC: 2025:KHC-D:8206-DB ITA No. 100044 of 2023

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 30TH DAY OF JUNE, 2025 PRESENT THE HON'BLE MR. JUSTICE R.DEVDAS AND THE HON'BLE MR. JUSTICE K V ARAVIND INCOME TAX APPEAL NO.100044 OF 2023 BETWEEN:

PRINCIPAL COMMISSIONER OF INCOME TAX, NAVANAGAR, HUBLI.

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, BELLARI. …APPELLANTS (BY SMT. ROOPA ANAVEKAR, ADVOCATE AND SRI. M.THIRUMALESH, ADVOCATE)

AND:

SHRI. J.M. VRUSHABENDRAIAH, N.C. COLONY, NEAR STATE BANK OF HYDERABAD, HOSAPETE-583201, PAN: AAWPV6572E. …RESPONDENT (BY SRI. SHASHANK S.HEGDE, ADVOCATE AND SRI. SHRIHARI KUSTA, ADVOCATE)

THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260A OF THE INCOME-TAX ACT, 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTION OF LAW STATED ABOVE AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, “B”

BENCH, BENGALURU IN ITA NO.299/BANG/2019, DATED 20.07.2022 FOR THE A.Y. 2010-11 MARKED AS ANNEXURE-A AND CONFIRM THE ORDER DATED 28.03.2015 PASSED BY THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, BELLARY FOR THE A.Y 2010-11 AS ENCLOSED AND MARKED AS ANNEXURE-C.

Digitally signed by CHANDRASHEKAR LAXMAN KATTIMANI Location: HIGH COURT OF KARNATAKA

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HC-KAR NC: 2025:KHC-D:8206-DB ITA No. 100044 of 2023

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

CORAM: THE HON'BLE MR. JUSTICE R.DEVDAS AND THE HON'BLE MR. JUSTICE K V ARAVIND ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE R.DEVDAS)

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 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

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HC-KAR NC: 2025:KHC-D:8206-DB ITA No. 100044 of 2023

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

Sd/- (R.DEVDAS) JUDGE

Sd/- (K V ARAVIND) JUDGE

CLK CT: UMD List No.: 1 Sl No.: 57

PRINCIPAL COMMISSIONER OF INCOME TAX vs. SHRI J M VRUSHABENDRAIAH

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