THE PR COMMISSIONER OF INCOME TAX vs. M/s. ABB LTD.,

PDF · subscribers
ITA/645/2023HC KarnatakaKAHC01054101202319 February 2025Bench: KRISHNA S DIXIT,G BASAVARAJA4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court disposed of the appeal without admitting it, based on the tax effect being below the threshold specified in CBDT circulars. Liberty was granted to the Revenue to revive the appeal if exceptions applied.

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 low tax effect, citing CBDT circulars.

What were the issues?

Whether the appeal filed by the Revenue should be entertained given the tax effect and relevant CBDT circulars. The substantial questions of law were kept open.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

- 1 -

NC: 2025:KHC:7316-DB ITA No. 645 of 2023

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH 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. 645 OF 2023 BETWEEN:

1.

THE PR. COMMISSIONER OF INCOME TAX, 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORMANGALA, BENGALURU - 560 095.

2.

THE ADDL. COMMISSIONER OF INCOME TAX (LTU), PRESENT ADDRESS THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 1(1) (1), 2ND FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU - 560 095. …APPELLANTS (BY SRI. SUSHAL TIWARI N, ADVOCATE) AND:

M/s. ABB LTD., 49, KHANIJA BHAVAN, RACE COURSE ROAD, 2ND FLOOR, EAST WING, BANGALORE - 560 001, PAN AAACA 3834B. …RESPONDENT (BY MS. MAHIMA GOUD, ADVOCATE FOR SMT. TANMAYEE RAJKUMAR)

Digitally signed by LAKSHMINARAYAN N Location: High Court of Karnataka

- 2 -

NC: 2025:KHC:7316-DB ITA No. 645 of 2023

THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC. 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 24/02/2022 PASSED IN ITA NO.317/BANG/2012, FOR THE ASSESSMENT YEAR 2007-2008. PRAYING TO I) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN.

THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: 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 Shri.Sushal Tiwari.N., for the Appellants/Revenue and Ms.Mahima Goud, learned counsel for Ms.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 24.02.2022 passed by the Income-Tax Appellate Tribunal, ‘C’ Bench, Bengaluru (for

- 3 -

NC: 2025:KHC:7316-DB ITA No. 645 of 2023

short, ‘Appellate Authority’) in ITA No.317/Bang/2012 for the Assessment Year 2007-2008.

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.05/2024 dated 15.03.2024 and 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 No.05/2024 dated 15.03.2024 and Circular No.09/2024 dated 17.09.2024.

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.

- 4 -

NC: 2025:KHC:7316-DB ITA No. 645 of 2023

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

Sd/- (KRISHNA S DIXIT) JUDGE

Sd/- (G BASAVARAJA) JUDGE

DH List No.: 1 Sl No.: 5 CT: BHK

More judgments on Section 260-A

All 2,570 judgments and leading authorities on Section 260-A →

Recent GST High Court judgments

Search GST case law →