PRL COMMR OF INCOME TAX-7, HYDERABAD vs. P MADHUSUDHAN REDDY, HYDERABAD

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ITTA/600/2017HC TelanganaHBHC01024067201706 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 reason for dismissal was that the tax effect in the instant appeal was well below the monetary limit of Rs. 2.00 crore, as stipulated by CBDT Circular No. 9 of 2024 for filing appeals before the High Court. The Court held that the appeal was not maintainable on this ground. However, the Court also provided a conditional relief, stating that if the appeal falls within any exception mentioned in Circular No. 5 of 2024, the Income Tax Department would be at liberty to seek revival of the appeal. No order as to costs was made. Consequently, any pending miscellaneous petitions were also closed.

What were the facts?

The Revenue, as the appellant, filed an Income Tax Tribunal 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', Hyderabad. The appeal pertained to Assessment Year 2006-2007 and was filed by the Principal Commissioner of Income Tax-7, Hyderabad, against Shri P. Madhusudhan Reddy. The High Court noted that the tax effect in the instant appeal was well below the monetary limit prescribed by CBDT Circular No. 9 of 2024, which amended Circular No. 5 of 2024, to enhance monetary limits for filing appeals.

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: No specific contention recorded for the assessee as the matter was decided on the Revenue's appeal based on the circular. Revenue's Contention: The Revenue filed the appeal, but its maintainability was questioned based on the monetary limits set by CBDT Circular No. 9 of 2024. The circular, dated 17.09.2024, amended previous circulars to reduce litigation by enhancing monetary limits for appeals before Tribunals, High Courts, and the Supreme Court. The limit for filing an appeal before the High Court was stated to be Rs. 2.00 crore.

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
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: 600 OF 2017 lncome Tax Tribunal Appeal Under Section 260A of the lncome Tax Act,1961 against the Order dated 21 .04.2017 passed in ITA No.1073/Hydl2O12 for the Assessment Year 2006-2007 on the file of the lncome Tax Appellate Tribunal, Hyderabad Bench'A', Hyderabad. Between: Principal Commissioner Of lncome f ax-7, l.T.Towers, A.C.Guards Hyderabad. ...Appel IanUAppellant AND P Madhusudhan Reddy, D.No.18-108, Road No.5 Kamala Nagar, Hyderabad [PAN No. AEWPP0306E] ...RespondenURespondent Counsel forthe Appellant : Sri Kamasani Sudhakar Reddy (Senior Standing Counsel For lncome Tax) Counsel forthe Respondent: M/s M N Advocates

The Court delivered the following: JUDGMENT

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HONOURABLE SRI JUSTICE P.SAM X.OSHY AND THE HONOURABLE SRI JUSTICE NARSIN.G RAO NANDIKONDA ITTA No.600 OF 2017 06.05.2026 Between: Principal Commissioner of Income Tax-7, IT Towers, A.C Guards, Hyderabad. . . .Appellant AND Shri P.Madhusudhan Reddy ...Respondent JUDGMENT. lper llott ble Sri Jusrrc.t P.Suut Kct.sl4.1 Heard Mr. Kamasani Sudhakar Reddy, leamed Senior Standing Counsel for the Income Tax Department for the appellanr. Perused the record.

2.

This appeal under Section 260,{ of the Income l'ax Act, 1961, has been preferred by the Revenue as the appeltant agirinst the order dated 2 L04.2017 passed by the Income T'ax Appel lare Tribunal. Hyderabad Bench 'A', Hyderabad. in I.T.A.No. 1073/Hydr2Ol2 for rhe Assessment Y ear 2006-2007 .

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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 limit fixed lor tiling an appeal befbre the High Court i .-.. 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 terrns of the aforesaid Circular No.9 of 2024 dated 11 .09.2024 However, if the appeal comes within the exception of Circular No.5 of 2024, ir 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 A.V.S.PRASAD DEPUW REGISTRAR //// SECTION OFFICER

1.

The lncome Tax Appellate Tribunal, Hyderabad Bench ,A,, Hyderabad.

2.

One CC to Sri Kamasani Sudhakar Reddy (Senior Standing Counsel For lncome Tax) IOPUC]

3.

One CC to M/s lrrl N Advocates, Advocate tOpUCl

4.

Two CD Copies gntCl. C To, Sa,/ba

HIGH COURT DATED: 0610512026 JUDGMENT ITTA.No.600 oi 2017 DISMISSING THE APPEAL WITHOUT COSTS o U os 11 1 =----- {E sr4.}\- \ A'l.,,.'.'' l.' ; \.\ t_\ trtl 2026 7', ^lLl " -\ // .<I ,:. ,. --. rr11 ! '1 ' I I \ t (-{ stb\)-(.

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