THE COMMISSIONER OF INCOME TAX-III vs. M/S.SRINIVASA HATCHERIES LIMITED

ITTA/109/2010HC TelanganaHBHC01040198201004 February 2025Bench: 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 not maintainable. This decision was based on CBDT Circular No. 9 of 2024, dated 17.09.2024 (which amended Circular No. 5 of 2024, dated 15.03.2024), enhancing the monetary limits for filing appeals by the Income Tax Department to reduce litigation. The circular specifies a monetary limit of Rs. 2.00 crore for filing appeals before the High Court. The Court found that the tax effect in the instant appeal was well below this prescribed limit. Therefore, the appeal was dismissed. The Court also noted that if the appeal fell within any exception provided in Circular No. 5 of 2024, the Income Tax Department could seek revival of the appeal. No order as to costs was made.

What were the facts?

The Revenue, represented by the Commissioner of Income Tax-III, Hyderabad, filed an appeal under Section 260A(4) of the Income Tax Act, 1961, against an order dated 30.11.2007 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. This order pertained to the assessment year 1996-1997. The ITAT's order was itself an appeal against the order dated 09.03.1999 passed by the Commissioner of Income Tax (Appeals)-IV, Hyderabad, which in turn was against the assessment order dated 30.11.1998 passed by the Joint Commissioner of Income Tax, Special Range-4, Hyderabad. The respondent in this appeal is M/s. Srinivasa Hatcheries Limited.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the monetary limits prescribed by the Central Board of Direct Taxes (CBDT) for filing appeals. Assessee's Contention: The judgment does not record any specific contentions made by the assessee. Revenue's Contention: The Revenue filed the appeal. The judgment notes that the tax effect in the instant appeal is well below the monetary limit prescribed by the CBDT.

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 TUESDAY, THE FOURTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT , THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEAL NO: 109 oF 2010 Appeal filed under Section 260(4) of the lncome-Tax Act , 196 1 , against the order dated. 30.11.2007 passed in lTA No. 335/H/99 for the assessment year 1996- 1997 on the file of the Court of the lncome Tax Appellate Tribunal Hyderabad Benchs 'B', Hyderabad preferred against the Order dated: 09.03.1999 passed in Appeal No. 1 191/JC.SR.4/ClT(A)lV/98-99 on the fite of the Court of the Commissroner of lncome Tax (Appeals)-lV, Hyderabad preferred against the Assessment Order dated: 30.11.'1998 passed in PAN No. 5-100 on the file of the Court of the Joint Commissioner of lncome Tax, (ASSTS ,) SpL.. Range-4. Hyderabad. Between: The Commissioner Of lncome iax-lll, I.T. Towers, AC Guards, Masab Tank, Hyderabad. ...Appellant AND M/s. Srinivasa Hatcheries Limited, Jubilee Hills, Hyderabad ...Respondent 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 : Sri Y Ratnakar The Court made the following: ORDER

THE HONOT]RABLE SRIJUSTICE P.SAM KOSHY AND THE HONOT]RABLE SRI JLTSTICI NARSING RAO NANDIKONDA ITTA No.109 OF 2010 JUDGMIiNT Iptr I lon'ble Sri .luslice P.Sam Koshy) Heard Ms. B.Sapna Reddy, leamed Junior Standing Counsel repre:;enting Mr. J.V.Prasad, leamed Senior Standing Counsel fbr the [ncome Tax Department for the appellant. Perused the record. 2- 1-his appeal under Section 260,{ of the Incorne Tax Act, 1961, has been pref'erred by the Ret'enue as the appellant against the order dated 30.11.2007 passed by ther Income Tax Appeltate Trihunal, Hyderabad Bench'B', Ftlderabad, in I.T.A.No.335/llyd/1999 tbr the Assessment Year 1996-97. t 3. Central lloard of Direct Taxes (CBDT) has issued Circular t No.5 of 2024 tlaretl i5.03.2024, by further enhancing the monetary limits for filing appeals by the Income Tax Department before the No.9 of 2024 dated 11 .09.2024, amending the previous Circular Income Tax Appcllate 'fribunals. Fligh Cor.rrts and Supreme Court

l'l 2 \ 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.2.00 crore. 4 In the instant appeal, tax effect is well below the monetary Iimit. 5. Therefore, the appeal filed by the Department is dismissed in terms of the aforesaid Circular No.9 of 2024 dated, 17.09.2024. However, if the appeal comes within the exception of Circular No.5 of 2024, it would be open to the Income Tax Department to seek revival ofthe appeal. There shall be no order as to costs. 6. Consequently, miscellaneous petitions pending, if any, shall stand closed. Sd/. K. SRINIVASA RAO NT REGISTRAR //TRUE COPY// S CTION OFFICER I The lncome Tax Appellate Tribunal Hyderabad Benchs 'B', Hyderabad. 2. The Commissioner of lncome Tax (Appeals)-lV, Hyderabad. 3. The Joint Commissioner of lncome Tax, (ASSTS.,) SPL.. Range-4, Hyderabad. 4. One CC to [/lr. J. V. Prasad Senior Standing Counsel for the lncome Tax Department tOPUCI 5. One CC to Sri Y Ratnakar, Advocate TOPUCI 6. Two CD Copies To, DL (r-

HIGH COURT DATED:04/0212025 JUDGMENT lTTA.No.109 of 2010 q 0q APn 1!rt: ST.'. i .oEr; pA-I c () * * DISMISSING THE ITTA. a 4\

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