Commissioner of Income TAx-III, IT Towers vs. M/s. Crescent Real Estates

ITTA/130/2012HC TelanganaHBHC01003529201218 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, as stipulated for filing appeals before the High Court by the CBDT in Circular No. 9 of 2024, which amended Circular No. 5 of 2024. The Court noted that these circulars were issued to reduce litigation. However, the Court granted liberty to the Income Tax Department to seek revival of the appeal if it falls within any exception provided in Circular No. 5 of 2024. No order as to costs was made. The operative direction was the dismissal of the appeal.

What were the facts?

The Revenue, as the appellant, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated May 13, 2011, passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. The appeal pertained to Assessment Year 2006-2007. The ITAT's order was preferred against an order dated February 26, 2010, passed by the Commissioner of Income Tax (Appeals)-III, Hyderabad, which in turn was against an assessment order dated December 26, 2008, passed by the Joint Commissioner of Income Tax, Range-8, Hyderabad. The respondent is M/s. Crescent Real Estates. The appeal was filed by the Department against the ITAT's order.

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. This issue turns on the interpretation and applicability of CBDT Circular No. 9 of 2024 and Circular No. 5 of 2024. Contentions: Assessee: Not recorded. Revenue: The appeal was filed by the Revenue. The judgment does not explicitly record the Revenue's arguments regarding the maintainability of the appeal, but it implies the appeal was filed by them.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, s, High Courts and Supreme Court

* 13447 , tN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD TUESDAY, THE EIGHTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENW FIVE PRESENT THE HONOURABLE SRI JUSTICE P"SAM KOSHY ANI) THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEAL NO: 130 OF 2012 Appeal filed under Section 260(A) of the lncome.Tax Act., 1961, against the order dated 13.05.2011 passed in lTA.No. 494/Hydl2010 for the assessment year 2006-2007 on the file of the lncome Tax Appellate Tribunal Hyderabad Bench 'B' Hyderabad preferred against the order dated 26.02.2010 passed in lTA.No. {.,'! o126tClT[A]-lll/08.09 on the file of the commissioner of lncome Tax (Appeals)-lll, Hyderabad preferred against the Assessment order dated 26.12.2008 passed in PAN/GIR No. AAEFC-1296-N on the file of the Joint commissioner of lncome Tax, Range-8, HYderabad. Between: Commissioner of lncome Tax-lll, lT Towers, A.C. Guards, Hyderabad ...Appellant AND lvl/s. crescent Real Estates, 9-4-771N2361A, 41-Hasmath colony Lane beside Bandhan Function Hall, Tolichowki Hyderabad ...ResPondent Counsel for the Appellant : Ms. B. Sapna Reddy Standing. Counsel representing Mr. J.V. Prasad Senior Standing Counsel for the lncome Tax Department Counsel for the Respondent : Sri Dantu Srinivas The Court delivered the following: I I

.d HONOURABLE SRI JUSTICE P'SAM KOSHY AND rHE HoNoIIRABLE sRi Jusrrcn NARSING RAo NANDIKONDA ITTANo. 130 0F 2012 JUDGMENT': /Pct Hon 'ble Sri Justice P.Sam KoshY) Heard Ms' B'Sapna Reddy' leamed Junior Standing Counsel representing Mr' J'V'Prasad' leamed Senior Standing Counsel for the lncome Tax Department for the appellant' Perused the record' This appeal under Section 260,{ of the Income Tax Act' 1961, has been Preferred bY the Revenue as the aPPellant against the order dated 13'05'2011 passed by the Income Tax Appellate T'ribunal, Hyderabad Bench 'B" Hyderabad' in I.T.A.No.494/HYD/2010 for the Assessment Year 2006-07 ' 3.CentralBoardofDirectTaxes(CBDT)hasissuedCircular No.9 of 2024 dated l7'Og'2024' amending the previous Circular No.5 of 202'1 dated 15'03'2024' by further enhancing the monetary timits for filing appeals by the Income Tax Department before the Income Tax Appellate Tribunals, High Courts and Supreme Court \ \ ) tI

2 a as a measure for reducing litigation. ln paragraph 2 of the said Circular, we find that the monetary limit fixed for fiting 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 frled 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 INT REGISTRAR //TRUE COPY// SECTION OFFICER 1. The lncome Tax Appellate Tribunal Hyderabad Bench 'B' Hyderabad 2. TheCommissioner of lncome Tax (Appeals)-lll, Hyderabad' 3. The Joint Commissioner of lncome Tax, Range-8' Hyderabad' 4. One CC to Ms. B. Sapna Reddy Standing Counsel [OPUCI 5. One CC to Sri Dantu Srinivas, Advocate IOPUC] 6. Two CD CoPies DL/gh o % d?: ! Ls.

HIGH COURT DATED:18/0212025 ORDER t- ::. lTTA.No.130 of 2012 DISMISSING TFlE ITTA. ,ff.. tHf STe 2 4 fiAB 2025 o (.) 6( I ) t F\oar^rr(' €' t-<,-b.

Recent GST High Court judgments

Search GST case law →