COMMISSIONER OF INCOME TAX-I, BANGALORE-1. vs. M/S GMR PROJECTS PVT. LTD., HYDERABAD.

ITTA/120/2010HC TelanganaHBHC01041232201010 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 below the monetary limit of Rs. 2.00 crore prescribed for filing appeals before the High Court by the Central Board of Direct Taxes (CBDT) through Circular No. 9 of 2024, which amended Circular No. 5 of 2024. This circular was issued to reduce litigation. The Court held that the appeal was not maintainable based on this circular. However, the Court also provided a conditional relief, stating that if the appeal falls within any exception mentioned in 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.

What were the facts?

The Revenue, represented by the Commissioner of Income Tax-I, Bangalore, filed an appeal before the High Court of Telangana at Hyderabad against an order dated 26-09-2008 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. This ITAT order was in relation to ITA No. 1014/Hyd/2007 for Assessment Year 2000-2001. The ITAT's order was itself preferred against an order passed by the Commissioner of Income Tax (Appeals)-III, Hyderabad, which in turn was against an order of the Assistant Commissioner of Income Tax, Circle - 2(3), Hyderabad. The respondent in this appeal is M/S GMR Projects Pvt. Ltd. The appeal was filed under Section 260A of the Income Tax Act, 1961.

What were the issues?

1. Whether the appeal filed by the Revenue before the High Court is maintainable given the tax effect and the prevailing monetary limits for filing appeals as stipulated by CBDT Circulars? Assessee's Contention: The judgment does not record any specific contentions from the assessee. The appeal was dismissed on the grounds of monetary limits. Revenue's Contention: The Revenue filed the appeal before the High Court. The judgment notes that the tax effect in the instant appeal is well below the monetary limit fixed for filing appeals before the High Court as per CBDT Circular No. 9 of 2024 (amending Circular No. 5 of 2024).

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD MONDAY, THE TENTH 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: 120 OF 2010 lncome Tax Tribunal Appeal Under Section 260,4 of the lncome Tax Act,1961 against the Order dated 26-09-2008 passed in ITA No.10't4lHydl2o07 for lhe Assessment Year 2000-2001 on the file of the lncome Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad preferred against the Order passed in ITA No.0315/2006-O7lACfi-2(3)lClT(A)-lll/07-08 on the file of the Commissioner of lncome Tax (Appeals)-lll, Hyderabad preferred against the Order dated 26-12-2006 passed in PAN/GIR No AJqACN699BD / N-244 on the file of the Assistant Commissioner of lncome Tax, Circle - 2(3), Hyderabad. Between: Commissioner of lncome Tax-|, Central Revenue Building, Queens Road, Bangalore-'l . (Present authority with jurisdiction over the matter in the place of Assiitant Commissioner of lncome Tax, Circle - 2(3), Hyderabad.) and Counsel for the Appellant : Ms. Sapna Reddy representing Sri J V Prasad, Sc for lncome Tax Counsel for the Respondents: Sri Challa Nagendra Prasad The Court delivered the follouling: Judgment M/S GMR Projects Pvt. Ltd.,(formerly M/S Nat West Consturctions Limited, 6-2-953, Krishha Plaza, Khairathabad, Hyderabad.) and presently 25l'l , Skip House, Museum road, Banglore -560025. ...Appellant ...Respondent

THE IIONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING ITAO NANDIKONDA ITTA No.120 OF 2010 JUDGMEIII: (per Hon'ble Sri Justice P.Sam Koshy) Heard Ms. B.Sapna Reddy, leamed Junior Standing Counsel representing Mr. J.V.Prasad, leamed Senior Sitanding Counsel for the Income Tax Department for the appellant. Perused the record- 2. Thi:; appeal under Section 260A of the Income L-ax Act, 1961, has been preferred by the Revenue as the appellant against the order dated, 29.09.2008 passed by the Income 'l'ax Appellate fribunal, Hyderabad Bench 'B', Hyderabad, \ I I I 1n I.T.A.No. I 0l 4 lHydl2007 for the Assessment Year 2000-0l 3. Centr,al Board of Direct 'faxes (CBDT) has issued Circular No.9 of 20?-4 dated, 17.09.2024, amending the previous Circular No.5 of 2024 dated 15.03.2024,by further enltancing the rnonetary limits for filing appeals by the Income Tax Department b,::fore the Income Tax Appellate Tribunals, Fligh Courts and Suprerne Courl

:ii 2 as a measure for reducing litigation. In paragraph 2 of the said Circular, we find that the monetaly limit hxed 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 limit. 5 Therefore, the appeal filed by the Department is dismissed in teirns of the aforesaid Circular No.9 of 2024 dated 17-09.2024' However, if the appeal cornes within the exceptior.r of Circular No.5 of 2024, it would be operr to the Income Tax Department to seek revival ofthe appeal. There shall be no order as to costs 6. Conserquently, miscellaneous petitions pending, if any, shall stand closed. Sd/. K. SRINIVASA RAO JOINT REGISTRAR //TRUE COPYII ECTION OFFICER o, 1. The lncome Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad 2- The Commissioner of lncome Tax (Appeals)-lll, Hyderabad 3. The Assistant Commissioner of lncome Tax, Circle - 2(3), Hyderabad 4. One CC to Sri J V Prasad, Sc for lncome Tax, [OPUC] 5. One CC to Sri Challa Nagendra Prasad, Advocate IOPUCI 6. Two CD Copies ADt(gh T 1-] I

HIGH COURT DATED:1010212025 JUDGMENT lTTA.No.120 of 2010 DISMISSING THE ITTA WITHOUT COSTS '1-= t S I.q /6: i.. 1t' ,J ,J il 1 t, ;925 ((( C) t -l )r--'r. -,^, , -'' ' ' .) .::-... _ - :;i, \ .D $ g tu6 l l ; l

Recent GST High Court judgments

Search GST case law →