THE COMMISSIONER OF INCOME TAX-III vs. M/S.R.C.C.SALES [P] LTD

ITTA/107/2010HC TelanganaHBHC01031627201004 February 2025Bench: 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 of Rs. 2.00 crore for filing appeals before the High Court, as stipulated by CBDT Circular No. 9 of 2024, dated 17.09.2024. This circular was issued to reduce litigation. The Court acknowledged that if the appeal fell within the exceptions mentioned in CBDT Circular No. 5 of 2024, the Income Tax Department would be at liberty to seek revival of the appeal. No order as to costs was made. Consequently, any pending miscellaneous petitions were also closed.

What were the facts?

The Revenue, Commissioner of Income Tax-III, Hyderabad, filed an appeal under Section 260(4) of the Income Tax Act, 1961, against an order dated 12-11-2007 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. The ITAT's order pertained to Assessment Year 2001-02 and was made in appeal against the order of the Commissioner of Income Tax (Appeals)-IV, Hyderabad, which in turn was against the order of the Assistant Commissioner of Income Tax, Circle-2(4), Hyderabad. The respondent assessee is M/s. R.C.C. Sales [P] LTD. The appeal was filed against the ITAT's order in ITA No.108/Hyd/2006. The High Court noted that the tax effect in the instant appeal was well below the monetary limit prescribed by CBDT Circular No. 9 of 2024.

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 turning on CBDT Circulars). Contentions: Assessee: No appearance was made by the assessee. Revenue: The Revenue argued that the appeal was filed against the ITAT's order. However, the High Court noted that the tax effect was below the monetary limit stipulated in CBDT Circular No. 9 of 2024, which was issued to reduce litigation. The Revenue did not present any arguments to counter the applicability of this circular or to demonstrate that the appeal fell within any exceptions.

Which sections of the Income-tax Act were involved?

Section 260(4)

AI-generated summary — verify with the full judgment below

134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD TUESDAY. THE FOURTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA ITTA No: 107 ot 2O1O Appeal filed under Section 260(4) of the lncome-Tax Act., 1961, against the order dated 12-11-2007 passed in l.T.A.No.108/Hydl2o06 for the Assessment Year 2001-02 on the file of the Court of the lncome Tax Appellate Tribunal Hyderabad Bench 'B', Hyderabad preferred agarnst the Order dated 12-12-2005 passed in Appeal.No.133lAC-z(4)lCff (A)-lV/05-06 on the file of the Commissioner of lncome Tax (Appeals)-lV, Hyderabad preferred against the Order dated: 28-10-2004 in PAN/GIR No AAACR 9675D/R-076 on the file of the Assistant Commissioner of lncometax, Circle-2(4), Hyderabad. Between: The Commissioner of lncome Tax-lll, l.T. Towers, A.C.Guards, Masab Tank, Hyderabad. ...Appellant AND M/s.R.C.C.Sales [P] LTD, Plot No.2 & 28, Phase-lV, IDA Jeedimetla, Hyderabad Counsel for the Appellant: Ms. B. Sapna Reddy, Junior Standing Counsel representing Mr. J.V. Prasad, Senior Standing Counsel for the lncome Tax Department Counsel for the Respondent: None Appeared The Court delivered the following: JUDGMENT I ...Res pondent

THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA .IUDGMENT (per Hon'ble Sri Juslice P.Sam Koshy) Fleard Ms. B.Sapna Reddy, leamed Junior Standing Counsel representing Mr. J.V.Prasad, leamed Senior Standing Counsel lor the Incorne Tax Departrnent for the appellant. Perused the record. 2. 1'his appeal under Section 260,4. ol the Income 'fax Act, 1961, has been preferred by the Revenue as the appellant against the order dated 12.11.2007 passed by the lncorre Tax Appeltate Tribunal, Flyderabad Bench 'B', Hyderabad, ln I.T.A.No.108/Hydl2007 for the Assessment Year 2001-02. I 3. Central Board of Direct Taxes (CBDT) has issued Circular ( No.5 ol 2024 dated 15.03.2024,by fwther enhancing the monetary limits tbr filing appeals by the Income Tax Deparlrnent betbre the No.9 of 2024 dated 17.09.2024, amending the previous Circular Income Tax Appellate Tribunals, High Courts and Supreme Court I'I'TA No.l07 OF 2010

2 t as a measure for reducing litigation, In paragraph 2 of the said Circular, we find that the monetary limit fixed for filing an appeal befbre the High Court is Rs.2.00 crore. 4. In 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 ol 2024 dated 17.09.2024. However, if the appeal comes within the exception of Circular No.5 of 2024, il would be open to the Income 'fax Department to seek revival ofthe appeal. There shall bc no order as to costs. 6. Consequently, miscellaneous petitions pending, if any, shall stand closed. Sd/. A.V.S.S.C.S.M. SARMA T REGISTRAR //TRUE COPY// TION OFFICER 1. The lncome Tax Appellate Tribunal Hyderabad Bench 'B', Hyderabad' 2. The Commissioner of lncome Tax (Appeals)-lV, Hyderabad' 3. The Assistant Commissioner of lncometax, Circle-2(4), Hyderabad' 4.oneCCtoMr.J.V.Prasad,seniorStandingCounselforthelncomeTax Department [OPUC] 5. Two CD Copies To, kam \ w

HIGH COURT DATED:0410212025 JUDGMENT lTTA.No.107 oI 2010 DISMISSING OF THE APPEAL 21 ittR 2U5 : !n" q {r{E SrA r€ O€ q na- ",P€C J t O \ I I I I

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