The Pr. Commissioner of Income-tax-4 vs. Mercury Projects Pvt Ltd.,
What did the High Court hold?
The High Court held that the appeal filed by the Revenue was dismissed in terms of CBDT Circular No. 9 of 2024 dated 17.09.2024, which enhanced the monetary limits for filing appeals. The Court found that the tax effect in the instant appeal was well below the prescribed monetary limit of Rs. 2.00 crore for filing an appeal before the High Court. The Court also stated that if the appeal falls 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. The operative direction was the dismissal of the appeal.
What were the facts?
The Revenue, represented by the Principal Commissioner of Income-tax-4, Hyderabad, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 31-05-2019 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'A', Hyderabad. The appeal pertained to Assessment Year 2014-2015 and was filed against Mercury Projects Pvt Ltd. 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 by the Income Tax Department. The circular fixed the monetary limit for filing an appeal before the High Court at Rs. 2.00 crore.
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. The Revenue contended that the appeal was filed in accordance with the prevailing procedures and against a valid order of the Tribunal. However, the judgment does not explicitly record the Revenue's specific arguments regarding the maintainability of the appeal in light of the circular. The judgment indicates that the tax effect in the instant appeal was well below the monetary limit set by the CBDT. The Respondent (assessee) did not present any arguments as recorded in the judgment.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
The Court delivered the following: Judgment
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HoNOURABLE SRI JUSTICE NARSING RAO NANDIKONDA ITTA No.97 OF 2022 06.05.2026 Betrveen Principal Commissioner of income Tax-4. Hr,derabad. Appellant AND Merour,r Pro.jccts I'vt. Ltd.. Plot No.
Sottu are Units l.ayout. Flite ch Citi. Madhapur. I Ii derabad-81. P,\N: AAI)C N{9t) l9lt Respondent JUDGMEN't. (pt'r Ilott'bla Sri.lu.sricc P.Som Ko.shy-l Heard Mr. Kamasani Sudhakar Reddy, iearned Senior Standing Counsel for thc lncornc lax l)epartrnent tbr the appellant. Perused the record.
This appeel unrler Section 260A of the Income Tax Act, 1961, has hq'en prel'erred h} the Rerenue as the appellant against the order dated 31.05.101() passed b1 thc Income 'lax Appellate Tribunal. Hrderabad Bench'A'. IIlderabad. in I.'l .A.No.2226r'Hydl2018 lor the As.cr-1119n1 \'.'rrr l0 l-l lo l j
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 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 limit fixed for filing an appeal before the High Court is Rs.2.00 crore
In the instant appeal, tax effect is well below the monetary limit.
Therefore, the appeal filed by the Department is dismissed in terms of the aforesaid Circular No.9 of 2024 dated 17.09.2024. Hou,ever, if the appeal cor-nes u,ithin 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
Consequently, miscellaneous petitions pending, if any, shall stand closed sol- rvrono. lsMAlL DEPUTY REGISTRAR //// ECTION OFFIGER To,
The lncome Tax Appellate Tribunal, Hyderabad Bench 'A" Hyderabad 2.OneCCtoSRIKAMASANISUDHAKARREDDY(STSCFoRINCoMETAX) loPUCl
One CC to M/S. MN ADVOCATES, Advocate [OPUC] n )
Two CD Copies ADK/BA
HE s)a)..'... .a,\. vl \\ /^l\. '(-\ -. -:; ,,t /Jr,; 7.2 \1. r\,2\.8 \1pc* '-\J HIGH COURT DATED: 0610512026 JUDGMENT lTTA.No.97 ot 2022 DISMISSING THE ITTA WITHOUT COSTS 2 zffi t\ H c JiJI{ T A p t ) pb 0 GI -rt\
Recent GST High Court judgments
Search GST case law →- M/S. Susanta Mohanty, Gandarpur, Cuttack vs. The Principal Commissioner Of Central Goods And Services Tax, BhubaneswarOrissa · 31 Oct 2026
- Arun Kumar Mallik vs. The Commissioner, CGST, Cx And Customs,BbsrOrissa · 31 Oct 2026
- Sabita Khosla vs. Superintendent, CGST And Central Excise, Rayagada-Ii Range, RayagadaOrissa · 31 Oct 2026
- M/S Karo Sambhav Private Limited Through Its Director Mr. Pranshu Singhal vs. Additional/Joint Commissioner, Central Goods And Services Tax, Delhi North & Anr.Delhi · 31 Oct 2026
- R.K.Service Station, Balasore vs. Commissioner CT And GST Odisha, CuttackOrissa · 31 Oct 2026
