Ita/68/2024 Of The Commissioner Of Income Tax v. Kennametal Inc,Usa

Digitally signedby SHAKAMBARILocation: HighCourt ofKarnataka NC: 2025:KHC:13737-DBITA No. 68 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2 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. 68 OF 2024 BETWEEN: 1. THE COMMISSIONER OF INCOME TAX , INTERNATIONAL TAXATION 7 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU 2. THE DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION CIRCLE 1(2), 4 FLOOR BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU - 560 095 …APPELLANTS (BY SRI. SUSHAL TIWARI N., ADVOCATE) AND: KENNAMETAL INC., USA C/O KENNAMETAL INDIA LTD., 8/9 sMILE, TUMKUR ROAD, NAGASANDRA, BENGALURU-560073 PAN NO …RESPONDENT THIS INCOME TAX APPEAL IS FILED UNDER SEC. 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED - 2 - 13.07.2022 PASSED IN ITA NO. 1658/BANG/2017, FOR THE ASSESSMENT YEAR 2014-2015 PRAYING THAT THIS HONBLE COURT MAY BE PLEASED TO 1. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN. 2 ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO. 1658/BANG/2017 DATED 13.07.2022 FOR ASSESSMENT YEAR 2014-2015 ANNEXURE A AND CONFIRM THE ORDER OF THE DRP CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE 1(2), 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 INTERESTS OF JUSTICE AND EQUITY. 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 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. 2. The Revenue is in appeal under Section 260-A of the Income Tax Act, 1961 questioning the correctness and legality of order dated 13.07.2022 passed by the Income-Tax Appellate Tribunal, Bengaluru (for short, ‘Appellate Authority’) in ITA No.1658/Bang/2017 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. - 4 - NC: 2025:KHC:13737-DB ITA No. 68 of 2024 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.: 8