COMMISSIONER, I.T. vs. K.PRASAD RAO SUBUDHI

ITA/199/2005HC OrissaODHC01036544200527 February 2017Bench: MR. JUSTICE I.MAHANTY,MR. JUSTICE BISWAJIT MOHANTY4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal. The Court noted that the Standing Counsel for the Income Tax Department fairly submitted that the tax effect in this appeal was below the monetary limit for filing an appeal. The Court referred to CBDT Circular No. 17 of 2019, which stipulated a monetary limit of Rs. 1.00 crore for filing appeals before the High Court. Since the appeal was filed by the Department on 08.08.2019 and the tax effect was below the prescribed limit, the appeal was dismissed in terms of the aforesaid Circular No. 17 of 2019. The Court also stated that if the appeal came within an exception under paragraph 10 of Circular No. 3 of 2018, it would be open to the Income Tax Department to seek revival of the appeal. Miscellaneous applications, if any, were to stand closed. No order as to costs was made.

What were the facts?

The Commissioner of Income Tax-III, Hyderabad (appellant) filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 05-09-2005 passed by the Income Tax Appellate Tribunal, Hyderabad Bench B. The appeal pertained to Assessment Year 1995-96 and challenged the Tribunal's order in ITA No. 506/Hyd/1999. This order, in turn, was preferred against the order of the Commissioner of Income Tax (Appeals), Hyderabad, dated 30-03-1999, which was against the order of the Deputy Commissioner of Income Tax (Assts) Special Range-3, Hyderabad, dated 17-11-1997. The respondent in the appeal is M/s. Shriram Chits Pvt. Ltd., Hyderabad. The appeal was filed before the High Court on 08.08.2019.

What were the issues?

1. Whether the appeal filed by the Income Tax Department before the High Court is maintainable given the tax effect is below the monetary limit for filing appeals. The appellant (Revenue) contended that the appeal was filed against the order of the Income Tax Appellate Tribunal. The respondent (Assessee) was represented by counsel. The High Court noted that the Standing Counsel for the Income Tax Department fairly submitted that the tax effect in this appeal is below the monetary limit for filing an appeal. The Court referred to CBDT Circular No. 17 of 2019, dated 08.08.2019, which amended Circular No. 3 of 2018 and enhanced the monetary limits for filing appeals before the High Court to Rs. 1.00 crore. The Court considered whether the appeal would fall within any exception allowing its revival.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD WEDNESDAY ,THE TWENry EIGHTH DAY OF DECEMBER TWO THOUSAND AND TWENTY TWO PRESENT THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HON'BLE SRI JUSTICE C.V. BHASKAR REDDY INCOME TAX TRIBUNAL APPEAL NO: 199 OF 2005 Appeal Under Section 260 A of the lncome Tax Act, 1961 against the order dated 05-09-2005 in ITA No. 506 / Hyd/ 1999 ( Assessment Year 1995- 96) on the file of the lncome Tax Appellate Tribunal, Hyderabad Bench B Hyderabad preferred against the order of the Commissioner of lncome Tax (Appeals ) , Hyderabad dated 30-03-1999 in Appeal No. 132 / DCSR/ CIT (A) -l / 98-99 preferred against the order of the Deputy Commissioner of lncome Tax ( Assts ) Special Range -3 , Hyderabad. Dated 17-11-1997 in Pan ./ GIR No. S- 17l Sr. 3 ...APPELLANT AND M/s. Shriram Chits Pvt. Ltd., Hyderabad ,..RESPONDENT Counsel for the Appellant:SRl. J V PRASAD (SC FOR INCOME TAX) Counsel for the Respondent: SRI R.V. EASWAR The Court delivered the following: JUDGMENT \ Between: The Commissioner Of lncometax -lll, Hyderabad.

THE HON'BLD THE CHIEF JUSTICE UJJAL BHIIYAN AND THE II()N'BLE SRI JUSTICE C.V.BHASKAR REDDY I.T.T.A. No.199 of 2OOS JUDGM.ENT: (Per the Hon'ble the Chief Justice Ujjal Bhuya/L) Heard Mr. J.V.Prasad, learned Standing Counsel for Income Tax Department appearing for the appellant and Mr. R.V.Easwar, learned Senior Counsei lor the respondent. 2. Tbis appeai under Section 260A of the Income Tax Act, 19b1, has been filed against the order dated 26.07.2OO4 passed by the Income Tax Appellate Tribunal, Hyderabad Bench ts', Hyderabad (Tribunal) in I.T.A.No.506/Hydl1999 for the assessnlent year 1995-96. 3. Mr. J.V.Prasad, learned Standing counsel fairly submits that ta-x effect in this appeal is below the monetary limit for liling appeal. 4. Central Board of Direct Taxes (CBDT) has issued Circular No.17 of 2019, dated 08.08.2019, amending the previous Circular No.3 of 2018, dated I 1.07.20 18, by further enhancing the monetary limits for filing appeals by the I I Income Tax Department before the Income Tax Appellate I I

2 :.\ 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.1.00 crore. 5. Therefore, the appeal Iiled by the Department is dated 08.08.2019. However, if the appeal comes within the exception under paragraph 10 of Circular No.3 of 2018, it would be open to the Income Tax Department to seek revival of the appeal. Miscellaneous applications pending, if any, shall stand closed. However, there shall be no order as to costs. Sd/-K.SRINIVASA RAO JOrNT REGTSFRAR //TRUE COPY// . / V SECTION OFFICER Tor. The lncome Tax Appellate Tribunal, Hyderabad Bench B Hyderabad z. The Commissioner of lncome Tax (Appeals ) , Hyderabad r. The Deputy Commissioner of lncome Tax ( Assts ) Special Range -3 , Hyderabad. 4. One CC to SRl. J V PRASAD (SC FOR INCOME TAX) Advocate [OPUC] 5. One CC to SRl. R.V. EASWAR , Advocate [OPUC] 6. Two CD Copies q dismissed in terms of the aforesaid Circular No.17 of 2019, \

HIGH COURT DATED:281121"2022 JUDGMENT ITTA.No.199 of 2005 DISMISSINC THE IlI'A 1 HE Sl4 74 ( i) 21 JAil ?[?3 I I @*r;q b,e--- (o.\*

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