The Pr. Commissioner of Income Tax-4 vs. M/s Pragati Green Meadows AND Resorts Ltd.,

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ITTA/784/2017HC TelanganaHBHC01078382201706 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 decision was based on the Central Board of Direct Taxes (CBDT) Circular No.9 of 2024, dated 17.09.2024, which amended Circular No.5 of 2024 and enhanced the monetary limits for filing appeals by the Income Tax Department. The circular fixed the monetary limit for filing an appeal before the High Court at Rs.2.00 crore. The judgment explicitly states that the tax effect in the instant appeal was well below this monetary limit. Therefore, the appeal was dismissed in terms of the circular. The court also noted that if the appeal fell within any exception of 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, Principal Commissioner of Income Tax-4, Hyderabad, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 08-12-2016 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'A'. The appeal pertained to Assessment Year 2010-2011 and challenged the ITAT's decision in ITA No.663/Hyd/2016. The respondent in this appeal is M/s Pragati Green Meadows & Resorts Ltd. The High Court was presented with the appeal for consideration.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, considering the monetary limits prescribed by CBDT Circulars for filing appeals. (Question of law) The Revenue contended that the appeal was filed against the order of the ITAT. The judgment does not record specific arguments from the Revenue regarding the merits of the ITAT's order. The Respondent's contentions are not recorded in the judgment. The primary basis for the High Court's decision appears to be the monetary limit stipulated in the CBDT Circular.

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
lncome Tax Tribunal Appeal Under Section 260A of the lncome Tax Act,1961 against the order dated 08-12-2016 passed in ITA No.663/Hyd/2016 for the Aisessment year 2o1O-2o11 on the file of the lncome Tax Appellate Tribunal, Hyderabad Bench'A', HYderabad. 13447 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD WEDNESDAY, THE SIXTH DAY OF MAY 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: 784 OF 2017 Between: The Principal Commissioner of lncome Tax-4, Hyderabad ...Appellant M/s Pragati Green Meadows AND Resorts Ltd', No 227 (Mega City Number) 8-2-2931 Al N2, Banjara Hills, Hyderabad. ...ResPondent Counsel for the Appellant : Sri. Kamasani Sudhakar Reddy (sr Sc for lncome Tax) Counsel for the Respondent: M/s. MN Advocates

The Court delivered the following: Judgment AND IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HONOURABLE SRI JUSTICE P.SAM KOSHY ANI) THE HONOURABLE SRI JUSI'ICE NARSING RAO NANDIKONDA ITTA No.784 OF 2017 06.05.2026 Between Principal Commissioner of Income Tax-4, Hvderabad. ..Appellant AND M/s Pragati Green Meadows & Resorts Ltd., No.227 (Mega City Number),8-2-293t Al Al2. Banjara Hills. H1'derabad. Respondent JUDGMENT: (per Hon'ble Sri Justice P.Sam Koshy.l Heard Mr. Kamasani Sudhakar Reddy, learned Sr:nior Standing Counsel lor the Income Tax Department for the appellant. Perused the record.

2.

This appeal under Section 2604, ol the Income lax Act, 1961, has been prelerred bv the Revenue as the appellant altainst the order dated 08,12.2016 passed by the Income Tax Appt;llate Tribunal, Hyderabad Bench 'A', Hy'derabad, in I.T.A.No.663/H'.d/2016 for the Assessment Year 20 10-20 I I

.- 2 To,

3.

Central Board of Direct Taxes (CBDT) has issued Circular No.9 of 2024 dated, 17.09.2024, amending rhe previous Circular No.5 of 2024 dated 1 5.03.2024, by funher enhancing the monetary limits for fiting appeals by the Income Tax Department belore 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 fbr filing an appeal befbre the High Court is Rs.2.00 crore.

4.

In the instant appeal, tax effect is well below the monetary limit.

5.

Therefore, the appeal filed by the Department is dismissed in terms of the aforesaid Circular No.9 of 2024 dated, 1i.09.2024. However, if 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, miscellaneous petitions pending, if any, shall stand closed' M.HD' lsMAlL DEPUTY REGIS //// ECTION OFFIGER Two CD CoPies 1. 2. 3 4 The lncome Tax Appellate Tribuna!' Hyderabad Bench 'A" Hyderabad one cc to SRl. KAMAsnui suJtrnr<nR REDDY (Sr sc FOR INCOME TAx) toPucl ;;Ja to M/s. MN ADvocATES' Advocate [oPUc] ADK,/BA V

HIGH COURT DATED: 0610512026 JUDGMENT ITTA.No.784 of 2017 DISMISSING THE ITTA WITHOUT COSTS tcF -r HE SIA 11 rljil 2026 c g,.rg16 r-iir) o ,,|'). 5,r xl crl € \ G6R*\W = -:::-i-

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