THE DY. COMMISSIONER OF INCOME TAX,HYD vs. M/S. SATYAM COMPUTER SERVICES LTD.

ITTA/293/2012HC TelanganaHBHC01073197201212 February 2025Author: 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 is the tax effect in the appeal being well below the monetary limit stipulated in CBDT Circular No. 9 of 2024, which enhances the threshold for filing appeals before the High Courts to Rs. 2.00 crore. The Court noted that the appeal was filed against an order of the Income Tax Appellate Tribunal for the Assessment Year 2001-02. The judgment explicitly states that the appeal is dismissed in terms of the aforementioned circular. However, it also provides a caveat: if the appeal falls within any exception of Circular No. 5 of 2024, the Income Tax Department would be at liberty to seek revival of the appeal. No costs were awarded.

What were the facts?

This is an appeal filed by the Revenue against the order dated 20-02-2009 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'A', in ITA No. 920/Hyd/2002 for the Assessment Year 2001-02. The appeal has been preferred by the Revenue under Section 260A of the Income Tax Act, 1961. The Central Board of Direct Taxes (CBDT) has issued Circular No. 9 of 2024, amending previous circulars, to enhance the monetary limits for filing appeals by the Income Tax Department before various appellate authorities, including the High Courts. The revised monetary limit for filing an appeal before the High Court is Rs. 2.00 crore. The tax effect in the present appeal is well below this enhanced monetary limit.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable given the tax effect is below the monetary limit prescribed by CBDT Circular No. 9 of 2024? Assessee's Contention: The assessee has not filed any specific arguments recorded in the judgment. However, the appeal is being dismissed based on the Revenue's own circular. Revenue's Contention: The Revenue has filed the appeal, and the judgment relies on CBDT Circular No. 9 of 2024 which sets a monetary limit for filing appeals. The tax effect in this case is below that 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

rN rHE H|GH "or*If3$otJ*tot"t#E oF TELANGANA wE D N E s D AY, lEffis'f^lJ#JJ?i F E BR u ARY 13447 | ..ApPellant ..ResPondent #,r I THE HONOURABLE SRI JUSTTCE P'SAM KOSHY rHE HoNouRABLE sRl""S3*o*slNG RAo NANDIK.NDA OME T PRESENT NAL APPEALNO: 293 oF2o12 INC AXTRIBU lncome Tax Tribunal APPeal Under ,ouinri ir'l" Order dated -20-2-2009 passe ?,e,rt'ibiir- zoo2 on the file of the lncome 'A', HYderabad' '"T,iEi"o*v commissioner of income tax' Hvderabad Section 260A of the lncome Tax Act' 1961 il"'iin rtr-" szo l+toT lor the Assessment ?;; ffi;ilfiiibunar, HYderabad Bench AND tVl/S. Satyam comPuter servlces Secunderabad' Itd., .l -8-303/36, 1st Floor' Mayfair Centre' Counsel for the Appellant : Ms' Bokaro Sapna Reddy' Sc for lncome Tax Gounsel for the Respondent: Sri Ch Pushyam Kiran

The Court delivered the following: Judgment

-v THE HON'B THE HQN'IILE SRI INAAT!]E TAX LE SRI JUS .sAIr4 TICE P - &!qi$ia t" lU.l,{.QtEe@a 93 JUSTICE AND NAR AP SING RA( No.2 TRIBUNAL PEAL MENT l.\ t ri, 't)

Sri,Justice p.Sarn Koshlt) .(rl-i i ALz .' _ ititrlrne 'lat Act, p:iiui agai.rr st the ! j'r, cilr ie Iribunal. Heard l,4s.Ilrkaro Sapna Reddy, leamed Income Tax, appcrt ing on behalf of the appellalt

The instar Lt ir rpeal under Section 260,{ of r 1961, has bet-.n p;-t,-erred by the Revenue as the a;; order dated 2Ct.(-)2 ,.1,)O9 passed by the Income j.a.; .. C. --- r L) ir rrll'tq Lounsel for \ { Hyderabad ,A, Hyderabad, in .I.T.A.No.92{.tti1..,- t,, 11g7 rir the Assessment y <:,ar i: C O I _ 02. 3. Central BlarrI r,f Direct Taxes (CBDT) has issir,:r1 {.,ri.:trlar Nr.l,9 of 2024 dated 77 . -tlt.'-.,O)4, amending the previous Cir.:rri,,1 . r,ir, .-l .i.r[24 dated 15.03.20,.1=1 , y, further enharcing the rrrrnr.ri -1, t;rn;r s tor fiiing appeals by the ir r.,rme Tax Fierr c[, Departrnent belore ii1,_ ln rorr: e .lax Appellate Tribunals reducing litigation . the monetary lirn it. Rs.2.00 crore. . Fligh Courts and Supreme Corir I :s :r ir t:a.sur.e for lr paragraph 2 of the said Cir_c,rl,__.i. r.,.r f rr,l ihat ll red for Iiling an appeal beforc i.l: r: I li.ll r (-.:ourt is 4 In the instar-rt appeal, tax effect is well below the monetary limit'

Therefore, the appeal frled by the Revenue is dismissed in terms of thc aforesaicl Circular No'9 of 2024 d'ated' t7'O9'2O24' However' if the appeal comes u'ithin the exception of Circular No'5 of 2024' it r,l,ould be open to the Income Tax Department to seek revival ol the appeal. No costs. 6 As a sequel, rniscellaneous applications pending if any' shall stand closed. K. SRINIVASA RAO JOINT REGISTRAR , //// SECTIO OFFICER To, ADK/gh i H: sf r x,", .rrLtlfr :*[[T'Iiiit 'ls#;l'#33'i'*

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HIGH COUFII- DATED:1 ZtCt,ZtzOZs JUDGMENT ITTA.No.293 of ZO12 DISMISSING I-HE ITTA WITHOUT CO:STS t -= ,OK (HF:'] 14 "ll ?ffi z , -t( T I * (, €

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