THE COMMR OF INCOME TAX-VI, HYDERABAD vs. M/S SUGUNA MOTORS PVT LTD., WARANGAL

ITTA/122/2015HC TelanganaHBHC01051299201524 March 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 dismissed in terms of CBDT Circular No. 9 of 2024 dated 17.09.2024. The Court noted that the monetary limit for filing an appeal before the High Court, as per the said circular, is Rs. 2.00 crore. The instant appeal's tax effect was found to be well below this monetary limit. Therefore, the appeal was not maintainable on this ground. The Court also stated that if the appeal came within the exception of Circular No. 5 of 2024, it would be open to the Income Tax Department to seek revival of the appeal. No order as to costs was made. The miscellaneous petitions, if any, were also closed.

What were the facts?

The Revenue, Commissioner of Income-tax-VI, Hyderabad, filed an appeal before the High Court of Telangana at Hyderabad against an order dated 12-02-2014 passed by the Income Tax Appellate Tribunal (ITAT), Bench 'A', Hyderabad. This order pertained to Income Tax Appeal No. 1212/Hyd/2009 for the Assessment Year 2000-01. The assessee is M/s Suguna Motors Pvt Ltd. The appeal was filed under Section 260A of the Income Tax Act, 1961. The Revenue was represented by its counsel, while no one appeared for the respondent assessee. The High Court considered a CBDT Circular regarding monetary limits for filing appeals.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the monetary limits prescribed by the CBDT for filing appeals before the High Court, as per Section 260A of the Income Tax Act, 1961. Contentions: Assessee: No arguments were recorded for the assessee as they did not appear. Revenue: The Revenue argued that the appeal should be considered on merits. However, the judgment primarily focuses on the applicability of the CBDT circular. The Revenue relied on Circular No. 9 of 2024 (amending Circular No. 5 of 2024) which sets the monetary limit for filing appeals before the High Court at Rs. 2.00 crore.

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 IVIONDAY, THE TWENTY FOURTH DAY OF MARCH TWO THOUSAND AND TWENTY FIVE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA lTTA.No: 122 OF 2015 lncome Tax Tribunal Appeal under Section 2604 of the lncome Tax Act, '1961 against the order dated 12-02-2014 for Assessment Year 2000-01 in lTA. No.1212lHydl2009 on the file of the lncome Tax Appellate Tribunal, Bench 'A' Hyderabad. Between: The Commissioner of lncome{ax-Vl, Hyderabad AND ...Appellant M/s Suguna Motors Pvt Ltd., 15-1-59/1, Opp. Govt Polytechnic, Autonagar'X' Road, Warangal. ...Respondent Counsel forthe Appellant: Ms. B. Sapna Reddy, Junior Standing Counsel representing Mr. J.V. Prasad, Senior Standing Counsel for lncome Tax Counsel for the Respondent: None Appeared The Court delivered the following: JUDGMENT

THE HONOURABLE SRI JUSTICE P'SAM KOSTIY AND TIIE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA ITTA No. 22 0B 2015 1 JUDGMENT (per Hon'ble Sri Justice P.Sam Koshy) Heard Ms. B.Sapna Reddy, learned Junior fitanding Counsel representing Mr. J.V'Prasad, learned Senior 'Standing Counsel for the Income Tax Department for the appellant' Perused the record. This appeal under Section 260,{ of the Incorne Tax Act' 1961, has been preferred by the Revenue as the appellant against the order dated 12'02'2014 passed by the In<;ome Tax Appellate 'tribunal, Hyderabad Bench 'A" Hydr:rabad' I.T.A.No.1212lHydl2OO9 for the Assessmdnt Year 2000-01' 2 ln ( ( 3. Central Board of Direct Taxes (CBDT) has issued Circular No.9 of 2024 date<\ 17.09.2024, amending the previous Circular No.5of2024datedl5.03.2024,byfurtherenhancingtht:monetary limits for filing appeals by the Income 'Iax Department before the lncome Tax Appeltate Tribunals, High Courts and Supreme Court _'---------

l- \i t\ 5. Therefore, the appear filed by the Department is dismissed in terms of the aforesaid Circular No.9 of 2024 dated 17.09.2024. However, if the appear comes within the exception of circular No.5 of 2024, it would be open to the Income Tax Department to seek revival of the appeal. There shall be no order as to costs. 6. Consequently, miscellaneous petitions pending, if any, shall as a measure for reducing litigation In paragraph 2 of the said Circular, we find that the monetary Iimit 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 limit. stand closed //TRUE COPYII SD/- K. SRINIVASA RAO JOINT REGISTRAR G: SECTION OFFICER (r To, Kam/gh 1 Ihe tlgomg Tax Appeilate.Tribunat, Bench ,A Hyderabad 3 ?,13 33l%Y,:.'" Prasad s"n;oibt*alng';;J;;, ror rncome rax ropUCJ I

HIGH COURT DATED:2410312025 JUDGMENT lTTA.No.122 ot 2015 DISMISSING OF THE APPEAL i I I I .. l) t,,i ' r-) v 1-I 10 il]t 2025 Il * L' I R+- -rr{hI

Recent GST High Court judgments

Search GST case law →