Principal Commissioner of Income Tax-1 vs. M/s Sri Sri GruhaNinnan India Pvt Ltd.

ITTA/153/2023HC TelanganaHBHC01036612202330 January 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. The Court referred to Circular No. 9 of 2024 issued by the CBDT, which sets a monetary limit of Rs. 2.00 crore for filing appeals before the High Court. The judgment explicitly states that the tax effect in the instant appeal was well below this monetary limit. Therefore, the appeal was dismissed in terms of the aforesaid Circular. The Court also noted that if the appeal came within the exceptions of Circular No. 5 of 2024, the Income Tax Department could seek revival of the appeal. No order as to costs was made. No other issues were decided on merits.

What were the facts?

The Revenue, Principal Commissioner of Income Tax-1, Hyderabad, filed an appeal before the High Court under Section 260A of the Income Tax Act, 1961. The appeal challenges an order dated 28.02.2023 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'A', in ITA No. 141/Hyd/2021 for Assessment Year 2016-2017. The ITAT's order was preferred against the order of the Commissioner of Income Tax (Appeals)-12, Hyderabad, which in turn was against the order of the Deputy Commissioner of Income Tax, Central Circle-2(3), Hyderabad. The assessee is M/s Sri Sri GruhaNirman India Pvt Ltd. The High Court noted that the tax effect in the instant appeal was below the monetary limit prescribed by the CBDT for filing appeals.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court in light of the monetary limits prescribed by the Central Board of Direct Taxes (CBDT) for filing appeals. The Revenue, as the appellant, relied on Circular No. 9 of 2024 dated 17.09.2024, which amended Circular No. 5 of 2024 dated 15.01.2024, enhancing monetary limits for appeals to reduce litigation. The Revenue contended that the tax effect in the present appeal was well below the prescribed limit of Rs. 2.00 crore for appeals before the High Court. The Respondent (assessee) did not record any specific arguments in the judgment.

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 THURSDAY, THE THIRTIETH 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: 153 OF 2023 lncome Tax Tribunal Appeal Under Section 260A of the lncome Tax Act,'1961 against the Order dated 28-02-2023 passed in ITA No. 141lHydl2021 for the Assessment Year 2016-2017 on the file of the lncome Tax Appellate Tribunal, Hyderabad Benchs 'A', Hyderabad preferred against the Order dated 28-08-2020 passed in Appeal No. 1013612019-2020 on the file of the Commissioner of lncome Tax (Appeals)-12, Hyderabad preferred against the Order dated 28-06-2019 passed in PAN/GIR No. AALCS2721G on the file of the Deputy Commissioner of lncome Tax, Central Circle-2(3), Hyderabad. Between: Principal Commissroner of lncome Tax-1, Hyderabad ...APPELLANT AND M/s Sri Sri GruhaNirman lndia Pvt Ltd., Sri Sri House, H.No.16-2-7331A12, R B Colony. Dilshuknagar, Hyderabad ...RESPONDENT Counsel for the Appellant: Sri J. V. Prasad (Standing Counsel for lncome Tax) Counsel for the Respondent: Sri Dundu Manmohan The Court delivered the following JUDGMENT:

THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRIJUSTICE NARSING RAO NANDIKONDA JUDGMENT (per Hon hlc Sri .lustice P.Sam Koshy) Heard Mr. J.V.Prasad, leamed Senior Standing Counsel for the Income Tax Departrnent 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 28.02.2023 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'A', Hyderabad, ln I.T.A.No. 1 4 l/Hydl202l lor the Assessment Year 2Ol6-17 . 3. Central Board ot' Direct Taxes (CBDT) has issued Circular No.9 of 2024 dated 17.09.2024, amending the previous Circular { I No.5 of 2024 dated 15.01.1024. by turther enhancing the monetary limits for filing appeals by the Income Tax Department before the Income Tax Appellate .fribunals. High Courts and Supreme Court as a measure lor reducing litigation. [n paragraph 2 of the said { ITTA No.l53 OF 2023

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 2O24 dated 17.09.2024. However, if the appeat 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 stand closed. Sd/. M. VIJAYA BHASKER T REGISTRAR //TRUE COPYII CTION OFFICER To 1. 2. 3. 4. 5. 6 Vt{/gh The lncome Tax Appellate Tribunal, Hyderabad Benchs 'A', Hyderabad The Commissioner of lncome Tax (Appeals)-12, Hyderabad The Deputy Commissioner of lncome Tax, Central Circle-2(3), Hyderabad One CC to'Sri J V Prasad (SC for lncome lax) [OPUC] One CC to Sri Dundtr Manmohan, Advocate [OPUC] Two CD Copies w \

HIGH COURT DATED: 3010112025 JUDGMENT !TTA.No.I53 of 2023 DISMISSING ITTA 7il75 ( (,( t l -\ )_ 1 g f ii /e / / k

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