Commissioner of Wealth Tax VI, vs. Sb. Abida Begum

WTA/2/2008HC TelanganaHBHC01056561200813 February 2025Author: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages

AI SummaryDismissed

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. The Court noted that the monetary limit for filing an appeal before the High Court is Rs. 2.00 crore, and the tax effect in the instant appeal was well below this limit. The Court stated that if the appeal fell 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. Any pending miscellaneous applications were also closed as a consequence.

What were the facts?

This case involves a Wealth Tax Appeal filed by the Commissioner of Wealth Tax VI, Hyderabad (the Revenue) against an order dated 07.01.2003 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'B' in W.T.A.No.323/Hyd/1997 for the Assessment Year 1992-93. The appeal was preferred against an order of the Commissioner of Wealth Tax (Appeals)-I, Hyderabad, which in turn was against an order of the Assistant Commissioner of Income Tax. The High Court was considering the appeal filed under Section 27(A) of the Wealth Tax Act, 1957. The appeal was filed by the Revenue. The tax effect in the instant appeal was stated to be well below the monetary limit prescribed by the Central Board of Direct Taxes (CBDT) circulars.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court given the monetary limits prescribed by CBDT Circular No. 9 of 2024 (amending Circular No. 5 of 2024) for filing appeals before High Courts, which is Rs. 2.00 crore. The Revenue contended that the appeal was filed under Section 27(A) of the Wealth Tax Act, 1957. The judgment does not record any specific arguments from the Revenue regarding the merits of the case or against the applicability of the circular. The judgment mentions that the tax effect is well below the monetary limit. The Respondent (assessee) did not appear to have filed any submissions as the judgment focuses on the Revenue's appeal and the applicability of the circular.

Which sections of the Income-tax Act were involved?

27(A)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

-';.:,rt;tlt;rt ttaritittq-$e*1t':. 'r1**a: IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY,THE THIRTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENry FIVE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSTNG RAO NANDIKONDA WEALTH TAX APPEAL NO: 2 OF 2008 Between: Commissioner of Wealth Tax VI, Hyderabad ...APPELLANT AND Sb. Abida Begum, S/o tate Abida Jan 22_3_660, puranihaveli, Hyderabad. ...RESPONDENT Appeal under section 27 (A) of the wearth rax Act ,1957 arising out of the Order of the Income Tax Appellate Tribunal, Hyderabad Bench ,.8,, Hyderabad made in w.T.A.No. 32grHyd/r997 dated 07-0r-2003 preferred against the Order of the Commissioner of Wealth _tax (Appcals )_I Hyderabad in Appeat No. 145 /ACt(3) iCIT (A) I /95_96 Dated 5_6_1997 preferred against the order of the Asst. commissioner of Income Tax , circre I (3), Hyderabad made in pAN/GIR 705 dated 02_03_1995 . l.A. NO: 1 OF 2011(WTAM P. NO: 47 OF 20111 Petition under Order 5 Rule 20 of CpC riw. Sec..l5.l CpC praying that in the circumstances stated in the affidavit fired in support of the petition, the High court may be preased permit the petitioner to cause service of notices by substitUte service i.e., publication of notice in local newspapers counsel for the Appelrant: Ms. BoKARo sApNA REDDY sc FoR INcoME TAx Counsel forthe Respondent: SRI KASYAPA SASTRY The Court delivered the foflowing Judgmdnt : II I I I '<!G=€-1-----=8 . THE HON'BLE SRI JUSTICE P.SAM I(OSH'I' AND THE HON'BLE SRI JUSTICE NARSTNG RAO IJAI{DIKONDA WEALTTI TAX APPEAL No.2 OF 2C.IJ8

JUDGMENT (per II)L'ble Sri Justlce P.Sa L Koshll) Heard Ms.Bokaro Sapna Reddy, learned Stan.rling, Counsel for Income Tax, appearing on behalf of the appellant

The instant zLppeal under 27(A) of the Wealth l':,rx 1ct, 1957, has been preferred by the Revenue as the appellarr: ; r,:.rir LSt the order dated O7.O 1.2001) passed by the Income Tax P ppe1l,rte Tribunal, Hyderabad "B" Bench, Hyderabad, in W.T.A.No.323,'I{r,cl /1997 lor tlie Assessment Y ex 1992-93. 3. Centra] Boarri of Direct Taxes (CBDT) has issr-r..a. (.li 'cular No.9 of 2024 dated 17 09.2024, amending the previous Ct.: ,_rlirr No.5 of 2024 dated 15.03.2024, by further enhalcing the mor.r'i:r-r li.nits for filing appeals by the Income Tax Department beltrrc ,,h,..: Income Tax Appellate Tribunals, High Courts and Supreme Cor_r. l.1:r rr measure for reducing litigation. In paragraph 2 of the said Ci,.<:.rl:r-, u,e find that the monetary limit fixed for filing an appeal before tire Iligh Court is Rs.2.0O crore. I tI I 4 In the ins1a,l appeal, tax effect is well below the monetarv limit.

Therefore, th. appeal filed by the Revenue is dismissed in terms of the aforesaid {lircular No.9 of 2024 dated, rr.og.2o24. However, if the appeal co,res ..vil.irin the exception of Circular No.S of 2024, it would be open 1., the Income Tax Department to seek revival of the appeal. No cosrs.

As a seqtrcl, miscellaleous applications pending if any, shall stand closed. K. SRINIVASA RAO INT REGISTRAR //// ECTION OFFICER To,

The Income Tar Appellate Tribunal, Hyderabad Bench "B" Hyderabad

The Commissioner of Wealth -tax (Appeals )-I Hyderabad

The Asst. Commissioner of Income Tax , Circle I (3), Hyderabad

One CC to Ms. BOKARO SAPNA REDDY, SC FOR I T DEPARTMENT' loPUCl

One CC to SRl. KASYAPA SASTRY Advocate [OPUC]

Two CD Copies kul/gh \ \ W

HIGH COURT DATED:1310212025 JUDGMENT WTA.No.2 of 2008 DISMISSING THE WII.L l'H TAX APPEAI. 1 \-- :;l /.I 2 ;r ilil 2[25 -l tsF!/\r( r,t( o i! i.l r\ -:. .). .,'/Y + * a. \ !i 6

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