The Pr. Commissioner of Income-tax-4 vs. M/s. Open Text Corporation India Pvt Ltd.

ITTA/269/2019HC TelanganaHBHC01057365201820 February 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 prescribed by the CBDT for filing appeals before the High Court. The Court referred to CBDT Circular No. 9 of 2024, dated September 11, 2024 (amending Circular No. 5 of 2024, dated January 15, 2024), which enhanced the monetary limits for filing appeals to reduce litigation. The circular fixed the monetary limit for filing an appeal before the High Court at Rs. 2.00 Crore. Since the tax effect in this appeal was below this limit, the appeal was dismissed. The Court also noted that if the appeal fell within an exception of Circular No. 5 of 2024, the department could seek revival. No order as to costs was made.

What were the facts?

The Revenue, represented by the Pr. Commissioner of Income-tax-4, Hyderabad, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated March 28, 2018, passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. The appeal pertained to Assessment Year 2011-2012 and concerned M/s. Open Text Corporation India Pvt Ltd. The ITAT order was challenged by the Revenue. The appeal was filed by the Revenue against the ITAT's order.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court in light of the monetary limits prescribed by the Central Board of Direct Taxes (CBDT) for filing appeals. The Revenue argued that the appeal was filed in accordance with the law. The Revenue relied on the fact that the appeal was filed. The judgment does not record any specific arguments from the Revenue regarding the maintainability of the appeal beyond the fact that it was filed. The Respondent (assessee) did not present any arguments as the appeal was dismissed on preliminary grounds.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

13447 | 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: 269 OF 2019 lncome Tax Tnbunal Appeal Under Section 2604 of the lncome Tax Act 1961 agarnst the order dated 28.03.2018 passed in ITA No 232/HYD12O16 for lhe Assessnrent Year 2011-2012 on the file of the Income Tax Appellate TribLrnal, Hyderabad Bench '8 , Hyderabad. Between The Pr. Commrssroner of Income-tax-4, Hyderabad ...Appella nt AND lV/s. Open Text Corporation lndia Pvt Ltd., (Cordys Software lndia Pvt Ltd is now merged with Open Text Corporation lndia Pvt Ltd.,) Building "D" Plot No 17. Software Units Layout IVladhapur,Hyderabad. 500 081 ...Respondent Counsel for the Appellant : Mr. K Sudhakar Reddy (Senior Standing Counsel For lncome Tax) Counsel for the Respondent: Mr. M. Naga Deepak The Court delivered the following:

IN TIIti I{tGII COURT IiOR TIIE STA'I'E Oti'IELANGANA ,,\T HYD[,RAB,\t) I'llFl, llONOUl{..\Bl.li SRI Jtls'rlCE P.S;\M KOSHY .\N t) l'llE IIO\OL R,\ltLE Sl{l ,lUS l'lCl'l N;\llSlNG Rr\O NANI)IKONI)A I I-tA No.269 ol 20 l9 Datcd: 20.02.2026 Ilctl ccn: l'he Prl.Conrnrissiottcl ttl' Incotttc I Ir,'l 1. I I vdclatracl . ,\Nf) M' s.Opcn lcr.i C orporrttion ltrdirti l']i t.[-ttl., Lltiildins t). l'}lot No. I i. Soliu arc Units I-avotrt. Madhapur'. [[1 dcrabati llcsprrndent Appellant JUDGNIEN'I Hearcl \4r.K.SLrclhakal I{cdclr'. learnecl Scnior Standing Mr.N4.Naga Deepak. lcarnccl cotttrsel or the respondent. Pcrtlscd the r.eco rcl (1t,'r illl.blt' St i ,ltr.titt.t' l' 'Si,r;r l',rtslt") Clounscl lbr Iticonre -l lrr appcrrin-9 oll t)eliall' of appcllant arld 2. -lhis appeat r.ttrtlct secliotr 2(r0r\ ol the Incon're Tax Act, L96I. has becn plelcr.recl by the Revenue as the appellanl IN against thc ordcr datcd 2801.20 I8 passctl by the hrcome Tax Appellatc Hyderabad Benoh 'B', Ilydcrabad, 'l'r iblrnal, l.'1'.A.No.232rHyd/201(r 1br thc,'\ssesstuctrt Yeat 201 I -12

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Centlal Board ol' [)ircct 'Iaxcs (CBD l') has issued Circular No.9 of 2024 clatcd 1l .09.2021, arneuditrg the prcvious Circular No.5 ol'2024 dated l-5.01.1024, by lurlher enhancing the utouetary lirnits lirr tiling appeals bv the Ittcoure Tax Departrtlent bclbrc the lr.rcourc Iax Appellatc .l ribunals. Iligh Courts atld Supreuc (ioutt as a ureasurc lbr lcclucirrg litigation. [n paragraph 2 o{- thc said Circular, rvc llnrl that thc ltronctrrry lintit lixcd lor liling an appcal bclbrc- tlic I Iigh Cour1 rs l{s.2.00 ('rorc

In thc instant altpcrl, tax cllbct is wcll belorv the uottctat'y To, liurit 5. 'l hclclorc. thc appcrl lilctl by' thc [)c;ratltncrtt is dismissed in tclnrs ol- tlrc albrcsaid Cilcular No.9 ol'2024 datcd 17.09.2024. [ [orvcr cr, if' thc appcal courcs u'ithin thc cxccption of Circular No.5 of 2024, tt r'voultl bc opell lo the lncotue Tax Departnlctrt to seek revival ol'the appcal.'l trerc slralI be tto ordet'as to costs Conseclucntly, rttisccllattcoLts petitiotls pending, if any, shall stand closecl N. SRIHARI DEPUTY REGISTRA ,// SECTION OFFICER The lncorne Tax Appellate Tribunal, Hyderabad Bench'8" Hyderabad One CC to tVlr. K Sudhakar Reddy (Senior Standing Counsel For lncome Tax) [oPUC] One CC to t\4 r lM Naga Deepak' Advocate [OPUC] Two CD CoPies 1 2 3 4 DL &,

HIGH COURT DATED: 2010212026 JUDGMENT ITTA. N o.269 of 2 01 9 DISMISSING THE ITTA c') r-'\ t6- '\ r. C. l,/ .lrlt(' "l - |

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