THE COMMISSIONER OF INCOME TAX 1 vs. CORDYS SOFTWARE (INDIA ) PVT LTD,

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ITTA/120/2015HC TelanganaHBHC01018403201520 February 2026Author: P.SAM KOSHY,NARSING RAO NANDIKONDA5 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 for filing appeals before the High Court, as stipulated by CBDT Circular No. 9 of 2024 (which amended Circular No. 5 of 2024). The Court referenced these circulars as measures for reducing litigation. The judgment stated that if the appeal fell within any exception provided in 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 Commissioner of Income Tax-1, Hyderabad (Revenue) filed an appeal before the High Court for the State of Telangana at Hyderabad against an order dated 15.03.2013 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'A'. The appeal pertains to Assessment Year 2007-2008 and challenges the Tribunal's decision in ITA No. 1972/Hyd/2011. The assessee is Cordys Software (India) Pvt Ltd. The High Court noted that the tax effect in the instant appeal was well below the monetary limit prescribed by the Central Board of Direct Taxes (CBDT) for filing appeals before the High Court.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, considering the monetary limits prescribed by the CBDT for filing appeals. Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The appeal was dismissed based on the Revenue's own submission implicitly acknowledging the tax effect being below the prescribed limit. Revenue's Contention: The Revenue, by filing the appeal, implicitly argued for its maintainability. However, the judgment indicates that the tax effect was well below the monetary limit set by CBDT Circular No. 9 of 2024 (amending Circular No. 5 of 2024), which is Rs. 2.00 Crore for appeals before the High Court. The Revenue's appeal was dismissed based on this fact.

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
t 134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD FRIDAY, THE TWENTIETH DAY OF FEBRUARY 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: 120 OF 20't5 Appeal filed under section 260-4 of the lncome Tax Act against order dated 15-03-2013 in ITA No. 1972lHyd/2O11 on the file of the Court of the lncome Tax Tribunal, Hyderabad Bench 'A', Hyderabad for Assessment Year 2007-2008. Between: The Commissioner of lncome Tax-1, Hyderabad ...APPELLANT'RESPONDENT AND Cordys Software (lndia) Pvt Ltd, Building D, Plot No.17 Software Units Layout , Madhapur, Hyderabad. ...RESPONDENT/APPELLANT Counsel for the Appellant: Sri K Sudhakar Reddy (Senior Standing Counsel for lncome Tax) Counsel for the Respondent: Sri M. Naga Deepak The Court delivered the following: JUDGMENT ,{. IN THE TIIGH 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.l20 of 2015 Dated: 20.02.2026 Between: Comrnissioner of Income Tax - I, Hyderabad. AND Cordys Software (lndia) Pvt.Ltd., Building D, I'lot No.l7, Software Units Layout, Madhapur, ttyderabad. ...Appellant ...Respondent

JUDGMENT (per lton'ble Sri Justice P.Sam Koshy) Heard Mr.K.Sudhakar Reddy, learned Senior Standing Counsel lor Income Tax appearing on behalf of appellant and Mr.M.Naga Deepak, learned counsel or the respondent. Perused the record.

2.

This appeal under Section 2604, of the Income Tax Act, 1961, has been preferred by the Revenue as the appellant against the order dated 15.03.2013 passed by the lncole Tax Hyderaba!, in Appellate l'ribunal, Hyderabad Bench 'A', I.T.A.No. t972/Hydl20l I for the Assessment Year 2007-08. 2 l----

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 1,5.03.2024,by further enhancing the monetary limits for filing appeals by the lncome Tax Department before the lncome 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 frling an appeal before the High Court is Rs.2.00 Crore 4. [n the instant appeal, tax effect is well below the monetary limit.

5.

Therefore, the appeal filed by the Department is dismissed in tenns of the aforesaid Circular No.9 of 2024 dated 17.09.2024 Howeveq 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. Consequently, miscellaneous petitions pending, if any, shall stand closed N.SRIHARI DEPUTY REGISTRAR /,// ECTION OFFICER

1.

The lncome Tax Tribunal, Hyderabad Bench 'A', Hyderabad

2.

One CC to Sri K. Sudhakar Reddy (Senior Standing Counsel for lncome Tax) IoPUCI Gilr To, 'Effi a)

3.

One CC to Sri M. Naga Deepak, Advocate [OPUC]

4.

Two CD Copies VH/PSL tu \

/ / HIGH COURT DATED: 2010212026 JUDGMENT ITTA.N o.120 of 2015 DISMISSING THE ITTA i) (..) *. i!- ::r tl'r=.f 2 5 tlLR 2l]26 * * \ I -JC t ofz/>_e I

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