The Commissioner of Income Tax-IV vs. Nekkanti Sea Foods Limited

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ITTA/159/2012HC TelanganaHBHC01050574201212 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 decision was based on the Central Board of Direct Taxes (CBDT) Circular No. 9 of 2024, dated September 17, 2024, which amended Circular No. 5 of 2024, dated March 15, 2024. These circulars enhance the monetary limits for filing appeals by the Income Tax Department to reduce litigation. Specifically, the monetary limit for filing an appeal before the High Court was fixed at Rs. 2.00 crore. The judgment notes that the tax effect in the instant appeal was well below this prescribed monetary limit. Therefore, the appeal was dismissed in terms of the circular. The court also stated that if the appeal falls within any exception of Circular No. 5 of 2024, the Income Tax Department could seek revival of the appeal. No costs were awarded.

What were the facts?

The Revenue, Commissioner of Income Tax-IV, Hyderabad, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated July 22, 2009, passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'A'. This order was in relation to ITA No. 518/H/09 for the Assessment Year 2004-05. The ITAT's order was itself an appeal against the order dated September 13, 2007, passed by the Commissioner of Income Tax (Appeals)-V, Hyderabad, which in turn was against an assessment order dated December 29, 2006, passed by the Deputy Commissioner of Income Tax, Circle 16(1), Hyderabad. The assessee is Nekkanti Sea Foods Limited. The appeal was filed against the ITAT's order.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, considering the monetary limits prescribed by the Central Board of Direct Taxes (CBDT) for filing appeals. Assessee's Contention: The judgment does not record any specific arguments made by the assessee. The appeal was decided based on a CBDT Circular. Revenue's Contention: The Revenue filed the appeal before the High Court. The judgment does not record specific arguments made by the Revenue regarding the merits of the case, but rather focuses on the procedural aspect of the appeal's maintainability based on the tax effect and CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEAL NO: 159 OF 2012 Appeal filed under Section 260(4) of the lncome-Tax Act, against the order daled.22-07-2009 passed in lTA.No. 518/H/09 (Assessment year 2004-05) on the file of the lncome Tax Appellate Tribunal Hyderabad Bench 'A', Hyderabad preferred against the Order dated: 13-09-2007 passed in ITA No. 3S1/DC-16(1/C|T(A)- V 12006-07 on the file of the Commissioner of lncome Tax (Appeals)-V, Hyderabad preferred against the Assessment Order dated: 29-12-2006 passed in pAN/GlR No. AAACN4664J/N-98 on the file of the Deputy Commissioner of lncome Tax, Circle '16(1), Hyderabad. Between: The Commissioner of Income Tax-lV, Hyderabad AND ...APPELLANT ...RESPONDENT Counsel for the Appellant: Ms. BOKARO SAPNA REDDY, S.C, FOR INCOME TAX l 13447 | WEDNESDAY, THE TWELFTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE Gounsel for the Respondent: The Court delivered the following: JUDGMENT Nekkanti Sea Foods Limited, Flat No.G-4, Mahara Block, Garden Towers, 1O-S-24, Masab Tank, Hyderabad.

THE HON 'BLE SRI JUSTICE P.SAM }iOSHY THE HON'BLE SRI JUSTICE NARSING RAO h{AI{DIKONDA AND I I Heard Ms.Bokaro Sapna Reddy, learned Stanciing Couusel for Income Tax, appearing on behalf of the appeilant 2. The instant appeal under Section 260A of thc income Tax Act, 1961, has been preferred by the Revemre as the appellant agair-ist the order dated 22.O7.2OO9 passed by the Income Tax ,\i:peilate f'ribun:rl, Hyderabad 'A" Bench, Hyderabad, in I.T.A.No.S18,'i'Iyol2OO9 for the Appellate Tribunals, High Courts and Supreme Cou;'t;,Ls a measure for Assessment Year 2004-05. INCOME TA}( TRIBUNAL APPEAL No.159 OF 2012 JUDGMENT | fuer Hort'bte Sn Justirc P.Sam Koshg) 3. Central Board of Direct Taxes (CBDT) has issu:,,1 Circular l.lo.9 of 2024 dated 17.Og.2024, arnending the previous Cir,:i.rl:rr No.5 oi 2C24 dated 15.03.2024. by further enhancing the monet,rr.,, limits for filing appeals by the Income Tax Department before r,he: Income Tax reducing litigation. In paragraph 2 of the said Cir<:ular, rve find that the monetary limit fixed for filing arr appeal belore rhe High Court is Rs.2.0O crore. t I

4.

In the instant appeal, tax effect is well below the monetary limit. 5. Therefore, the appeal filed by the Revenue is dismissed in terms of the aforesaid Circular No.9 of 2024 dated 17.O9.2O24. However, if the appeal comes within the exception of Circular No.S of 2024 , it would be open to the Income Tax Department to seek revival of the appeal. No costs 6. As a sequel, miscellaneous applications pending if any, shall stand closed. l^ Sd/- K. SRINIVASA RAO OINT REGISTRAR ECTION OFFICER To, 1. The lncome Tax Appellate Tribunal Hyderabad Bench 'A" Hyderabad 2. The Commissionei of lncome Tax (Appeals)-V, Hyderabad a. fn" O"puty Commissioner of lncome Tax' Circle 16(1)' Hyderabad' a. On" Ci to'trls. Bokaro Sapna Reddy, S C. For lncome Tax [OPUC] 5. Two CD CoPies Plp/gh Page 2 of 3 //TRUE COPY// I I v

HIGH COURT DATE D: 1 2t0212025 JUDGMENT lTTA.No.159 of 2012 DISMISS!NG THE APPEAL 11F- Sf 1 a16 k t c) z c-- t o : -.a:-a::-/ ?v6 I I 2 1 i'Af, 2025 @

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