PRINCIPAL COMMISSIONER OF INCOME TAX-7 vs. SHRI P.MADHUSUDHAN REDDY

PDF · subscribers
ITTA/624/2017HC TelanganaHBHC01055816201706 May 2026Author: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The primary reasoning was based on the CBDT Circular No. 9 of 2024, which stipulated a monetary limit of Rs. 2.00 crore for filing appeals before the High Court. The Court found that the tax effect in the instant appeal was well below this prescribed limit. Therefore, the appeal was not maintainable under the revised guidelines. The Court also noted that if the appeal fell within any exceptions mentioned in Circular No. 5 of 2024, the Income Tax Department could seek revival of the appeal. No order as to costs was made.

What were the facts?

The Revenue, specifically the Principal Commissioner of Income Tax-7, Hyderabad, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 21.04.2017 passed by the Income Tax Appellate Tribunal, Hyderabad Bench-A. The appeal pertained to Assessment Year 2002-2003. The High Court noted that the Central Board of Direct Taxes (CBDT) had issued Circular No. 9 of 2024, amending Circular No. 5 of 2024, to enhance monetary limits for filing appeals. The revised monetary limit for filing an appeal before the High Court was Rs. 2.00 crore. The tax effect in the present appeal was stated to be well below this monetary limit.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court given the monetary limits prescribed by the CBDT circulars? (Question of law) Assessee's Contention: The judgment does not record any specific contentions from the assessee. Revenue's Contention: The Revenue filed the appeal. The High Court's decision is based on the CBDT Circular No. 9 of 2024, which sets a monetary limit for filing appeals before the High Court. The tax effect in the present appeal is below this limit.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD WEDNESDAY, THE SIXTH DAY OF IVAY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEAL NO: 624 OF 2017 Appeal under section 260A of the lncome Tax Act, 1961 against the Order dated 21-04-2017 in lrA No. 1070/Hyd/2012 on the file of the lncome Tax Appellate Tribunal Hyderabad Bench-A, Hyderabad. Between: Principal Commissioner of Hyderabad. lncome Tax-7, l.T. Towers, A.C. Guards, ...APPELLANT AND Shri P. Madhusudhan Reddy, D.No. 18-108, Road No.5, Kamala Nagar, Hyderabad. ...RESPONDENT Counsel forthe Appellant: Sri Kamasani Sudhakar Reddy Senior Standing Counsel for lncome Tax Counsel forthe Respondent: M/s MN Advocates

The Court delivered the following: JUDGMENT

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HONOURABLE SRI JUSTICE P.SAM II.OSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA ITTA No.624 OF 2017 06.05.2026 Between: Principal Commissioner of Income Tax-7, IT Towers, A.C Guards, Hyderabad. Appellant AND Shri P.Madhusudhan Redd., Respondent JUDGMENTT (per Hon'ble Sri Justice P.Sam Koshy.l Heard Mr. Kamasani Sudhakar Reddy, leamed Senior Standing Counsel for the Incorre'I'ax Department for the appellant. Perused the record"

2.

This appeal under Section 260A of the Income '.-ax Act, 1961, has been pref'erred by the Revenue as the appellant aglinst the order dated 21.04.2017 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'A, Hyderabad. in LT.A.No.1070iHydr2012 lor the Assessment Y ear 2002-2003 .

-

3.

Central Board of Direct Taxes (CBDT) has issued Circular No.9 of 2024 dated 17 .09 .2024, amending the previous Circular No.5 of 2024 dated 15.03.2024, by further enhancing the monetary limits for filing appeals by the Income Tax Department before the Income Tax Appellate Tribunals, High Courts and Supreme Court as a measure for reducing litigation. In paragraph 2 of the said Circular, we find that the monetary lirnit fixed for filing an appeal before the High Court is Rs.2.00 crore. 4. ln the instant appeal, tax eff'ect is well below the rnonetary limit.

5.

Therefore, the appeal filed by the Department is dismissed in terms of the aloresaid Circular No.9 of 2024 dared 17.09.2024. However, il the appeal comes within the exception of Circular No.5 of 2024, it would be open to the Income Tax Department to seek revival of the appeal. There shall be no order as to costs.

6.

Consequently. rriscellaneous petitlons pending. il any. shall stand closed. MOHD. ISMAIL DEPUTY REGISTRAR //// SECTION OFFICER To,

1.

The lncome Tax Appellate Tribunal Hyderabad Bench_A, Hyderabad. 2. one cc to Sri Kamasani Sudhakar Reddy senior Standing counser for lncome Tax [OPUC]

3.

One CC to M/s MN Advocates, Advocate tOpUCI

4.

Two CD Copies VH/BA fm4. 6

aE sraT;1 ' or-' t. :j d) I,,, .t ,' s,..t' .. ,r 'r-'j_l -a ,,.i'6i', t7 <-' //:;r,:' 11 d4. \7* iec, HIGH COURT DATED: 0610512026 JUDGMENT ITTA.No.624 of 2017 DISMlSSING ITTA ,liii 2026 /'.i' 1.1{ ( 9\ul,-a'

Recent GST High Court judgments

Search GST case law →