COMMISSIONER OF INCOME TAX vs. M/S.AP MINERAL DEVELIPMENT CORPORATION LTD

ITTA/15/2010HC TelanganaHBHC01050291201029 January 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 appeal was below the monetary limit of Rs. 2.00 crore, as specified for appeals before the High Court in CBDT Circular No. 9 of 2024. The Court stated that if the appeal fell within any exceptions provided in Circular No. 5 of 2024, the Income Tax Department could seek revival of the appeal. No order as to costs was made. The ratio decidendi is that appeals filed by the Revenue before the High Court must adhere to the monetary limits prescribed by CBDT circulars for reducing litigation. The operative direction was the dismissal of the appeal.

What were the facts?

The Revenue, Commissioner of Income Tax, Circle 3 [4], Hyderabad, filed an Income Tax Tribunal Appeal (ITTA) No. 15 of 2010 before the High Court of Telangana at Hyderabad. This appeal was against the order dated 28-10-2005 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'A', for the Assessment Year 1998-99. The ITAT's order was itself an appeal against the order dated 23-01-2002 passed by the Commissioner of Income Tax (Appeals)-II, Hyderabad, which in turn was against the order dated 05-03-2001 passed by the Additional Commissioner of Income Tax (Assts) Special Range-1, Hyderabad. The respondent in the appeal is M/s. AP Mineral Development Corporation Ltd.

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) Circulars? The Revenue, through its counsel, did not present any arguments on the merits of the case. The High Court noted that the tax effect in the instant appeal was well below the monetary limit for filing an appeal before the High Court as stipulated by CBDT Circular No. 9 of 2024 (dated 17.09.2024), which amended Circular No. 5 of 2024 (dated 15.03.2024). The Revenue's appeal was therefore considered for dismissal based on this circular.

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 WEDNESDAY, THE TWENry NINTH DAY OF JANUARY 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: 1 5 0F 2010 lncome Tax Tribunal Appeal Under Section 2604 of the Income Tax Act,1 961 against the Order dated 28-10-2005 passed in tTA No. 275tHyDl2O02 for the Assessment Year 1998-99 on the file of the lncome Tax Appellate Tribunal, Hyderabad Bench 'A', Hyderabad preferred against the Order dated 23-01-ZOO2 passed in ITA No. 484/ClT(A)-ll/01-02 on the file of the Commissioner of lncome Tax (Appeals)-ll, Hyderabad preferred against the Order dated 05-03-200j passed in PAN/GIR No.A.16 on the file of the Additional Commissioner of lncome Tax (Assts)Special Range-1, Hyderabad. Between: Commissioner of lncome Tax, Circle 3 [4], Hyderabad. ...Appellant AND M/S.AP Mineral Development Corporation Ltd, Pancom Business Centre, 2nd Floor, Ameerpet, Hyderabad. ...Respondent Counsel for the Appellant : Ms. B Sapna Reddy representing Sri J V Prasad, Sc Counsel forthe Respondent: Sri V Subrahmanyam The Court delivered the following: Judgment

THE HONOURABLE SRI JUSTTCE P.SAM KOSIIY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA TTTA No.15 OF 2010 JUDGMENT (per 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 appellant. Perused the record. 2. This appeal under Section 2604, of the lncome Tax Act, 1961, has been preferred by the Revenue as the appellant against the order dated 28.10.2005 passed by the lncome Tax Appetlate Tribunal, Hyderabad Bench 'A', Hyderabad, in l.T.A.No.275lHyd/2002 for the Assessment Year 1998-99' 3. Central Board of Direct Taxes (CBDT) has issued Circular No.9 of 2024 dated 17.09.2024, amending the previous Circular No.5 of 2024 dated 15.03.2024, by further enhancing the monetary timits for fiting appeals by the Income Tax Department before the lncome Tax Appellate Tribunals, High Courts and Supreme Court as a measure for reducing litigation. In paragraph 2 of the said \ c ,-,- f / // t I \

2 \ 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 limit. 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 JOINT REGISTRAR //TRUE COPY// CTION OFFICER The lncome Tax Appellate Tribunal, Hyderabad Bench 'A', Hyderabad The Commissioner of lncome Tax (Appeals)-ll, Hyderabad The Additional Commissioner of lncome Tax (Assts)Special Range-1, Hyderabad. One CC to Sri J V Prasad, Advocate [OPUC] One CC to Sri V Subrahmanyam, Advocate [OPUC] Two CD Copies To 1 2 3 4 5 b ^W

HIGH COURT DATED:2910112025 JUDGMENT lTTA.No.15 of 2010 DISMISSING THE ITTA WITHOUT COSTS 1 / FEB 2025 14 14: E t{ ...C) * oE C T co .:\ 1- o^ :,,

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