COMNR.OF I.TAX vs. M/S.SONA CHANDI

ITA/9/2008HC OrissaODHC01051112200823 March 2017Bench: MR. JUSTICE I.MAHANTY,MR. JUSTICE BISWAJIT MOHANTY4 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 the tax effect of the appeal, which was found to be well below the monetary limit prescribed by CBDT Circular No. 9 of 2024 (dated 17.09.2024, amending Circular No. 5 of 2024 dated 15.03.2024). This circular enhances monetary limits for filing appeals before Appellate Tribunals, High Courts, and the Supreme Court to reduce litigation. The revised monetary limit for filing an appeal before the High Court is Rs. 2.00 crore. The Court noted that if the appeal fell within any exception provided in Circular No. 5 of 2024, the Income Tax Department would be at liberty to seek revival of the appeal. No costs were awarded. Miscellaneous applications, if any, were closed.

What were the facts?

The Revenue, Commissioner of Wealth Tax-VI, Hyderabad, filed an appeal under Section 27(A) of the Wealth Tax Act, 1957, against an order dated 21.01.2003 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. This order was made in relation to Wealth Tax Appeal No. 163/Hyd/1997 for the Assessment Year 1990-91. The appeal was preferred against the order of the Commissioner of Income Tax (Appeals)-I, Hyderabad, which in turn was against the order of the Assistant Commissioner of Wealth Tax, Circle 1(3), Hyderabad. The respondent in the appeal is Mr. Danish Ali Khan, Hyderabad. The High Court heard the appeal on 13.02.2025.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court given the monetary limits prescribed by the Central Board of Direct Taxes (CBDT) for filing appeals. (Question of law) Assessee's Contention: Not recorded in the judgment. Revenue's Contention: The Revenue, as the appellant, filed the appeal. The judgment does not explicitly record the revenue's specific arguments on the merits of the case, but rather focuses on the procedural aspect of the appeal's maintainability based on CBDT circulars. The revenue relied on the fact that they had filed the appeal, implying a belief in its validity. 2. Whether the appeal should be dismissed in terms of CBDT Circular No. 9 of 2024, which enhances monetary limits for filing appeals.

Which sections of the Income-tax Act were involved?

Section 27(A)

AI-generated summary — verify with the full judgment below

'': 43447 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSORY, THE THIRTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA WEALTH TAX APPEAL NO: 9 OF 2008 AppealunderSection2T(A)oftheWealthTaxAct,l95Tarisingoutofthe order of the lncome Tax Appellate Tribunal, Hyderabad Bench "8" Hyderabad made in w.T.A.No. 163/Hyd/1997 dated 21-01-2003 prefened against the order of theCommissioneroflncometax(Appeals)-lHyderabadinAppealNo' y-,g 282lAC1(3yClT(A)l/95-96 Dated 13-03-1997 preferred against the order of the AssistantCommissionerofWealthTax,Circlel(3),HyderabadmadeinPAN/GIR D-705 dated 30-03-1995 Between: Commissioner of Wealth Tax-Vl, Hyderabad AND Nb.Danish Ali Khan, Hyderabad Counsel for the Appellant: Ms. BOKARO SAPNA REDDY' S.C. FOR INCOME TAX Gounsel for the ResPondent: ---- The Court delivered the following: JUDGMENT .,.APPELLANT ...RESPONDENT f

T}IE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON''BLE SRI JUSTICE NARSING RAO NANDIKONDA WEALTH TA)( APPEAL No.9 OF 2OO8 JUDGMENT: lter 1{ 'L'bte S.rJustice P.Sam Koshu) appeals by tlre .ncome Tax Department before the Income Tax Heard M s. Bokaro Sapna Reddy, learned Standir-r5; Counsel for Income Tax, alrpea.ring on behalf of the appellant 2. The instr nt zrppeal under 27(A) of the Wea,lth Ta-x -A.ct, 1957, has been preferre< by the Revenue as the appellant against the order dated 21.01.200.3 passed by the Income Tax Appellate Tribunal, Hyderabad "13' Bt:nch, Hyderabad, in W.T.A.No.163 lHyd/1997 for the Assessment Ye ar I 990-9 1 3. Central Iioard ol Direct Taxes (CBDT) has issued Crrcu]ar No.9 of 2024 dated 17.09'.2024, amending the previous Circular No.5 of 2024 dated 15.03.21124 , by further enhancing the monetary limits for filing I Appellate TribrLnals, High Courts and Supreme Courl as a measure for reducing litigation. In paragraph 2 of the said Circular, we hnd that the monetarl, irni- fixed for filing an appeal before the High Court is Rs.2.00 crorc I

Page 2 of 3 4 5 In the instant appeaJ, tax effect is well below the monetary limit. Therefore, the appeat filed by the Revenue is dismissed in terms of the aforesaid Circular No.9 of 2024 dated 17.Og.2O24. However, if the appezrl comes within the exception of Circular No.S of 2024, it would be open to the income Tax Department to seek revival of the appeal. No costs 6. Asa sequel, miscellaleous appiications pending if any, shall l , , Il q"? starld closed Sd/- K. SRINIVASA RAO JOINT REGISTRAR //TRUE COPY// SECTION OFFICER 1. The lncome Tax Appellate Tribunal, Hyderabad Bench "8" Hyderabad 2. The Commissioner of lncome tax (Appeals )-l Hyderabad 3. The Assistant Commissioner of Wealth Tax , Circle 1 (3), Hyderabad 4. One CC to Ms.Bokaro Sapna Reddy, S.C. for lncome Tax [OPUC] s. Two CD Copies Plp/gh o To, , r.' \\

I HIGH COURT DATED:13111212025 JUDGMENT WTA.No.9 of 2008 DISMISSING THE APPEAL frtE S TAI(. (.) ). ( * c. ((' :a C. 01 ApF .1rJzl \ r:. "1 C6. * tit a T(.,,tr-o f I I i I I I i I i I l I yD

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