The Commissioner of Income Tax (Central), vs. M/s. Satyam Computer Services Ltd.,

ITTA/161/2012HC TelanganaHBHC01043468201217 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 dismissal was based on CBDT Circular No. 9 of 2024, which amended Circular No. 5 of 2024 and enhanced the monetary limits for filing appeals by the Income Tax Department before the ITAT, High Courts, and Supreme Court to reduce litigation. Paragraph 2 of the circular specifies that the monetary limit for filing an appeal before the High Court is Rs. 2.00 crore. The court found that the tax effect in the instant appeal was well below this monetary limit. Therefore, the appeal was dismissed in terms of the said circular. The court also noted 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. Any pending miscellaneous applications were also closed.

What were the facts?

The Revenue, Commissioner of Income Tax (Central), Hyderabad, filed an appeal before the High Court of Telangana at Hyderabad against an order dated 30.01.2009 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'A'. The ITAT order was in relation to ITA.No. 924/Hyd/2007 for the assessment year 1999-2000. This ITAT order was itself preferred against an order dated 28-05-2007 passed by the Commissioner of Income Tax (Appeals)-I, Hyderabad, which in turn was against an order dated 28-12-2006 passed by the Deputy Commissioner of Income Tax, Central Circle-1, Hyderabad. The respondent in the appeal is M/s. Satyam Computer Services Ltd. The appeal was filed under Section 260A of the Income Tax Act, 1961.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the monetary limits prescribed by CBDT Circular No. 9 of 2024. The Revenue, as the appellant, contended that the appeal was filed under Section 260A of the Income Tax Act, 1961. The judgment does not record any specific arguments from the respondent (assessee) regarding the maintainability of the appeal. However, the court's decision is based on the tax effect being below the monetary limit stipulated in the circular.

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 IVIONDAY, THE SEVENTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTIGE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEAL NO: 161 OF 2012 Appeal liled under Section 260(4) of the lncome Tax Act, 'i961 , against the order dated 30.01.2009 passed in lTA.No. 924lHydl2007 for the assessment year 1999-2000 on the file of the lncome Tax Appellate Tribunal Hyderabad Bench ,A, Hyderabad preferred against the Order dated 28-05-2007 passed in lTA.Nos. 0609- 0611/CC-1. Hyd/ClT(A)-ll06-07 on the file of the Commissioner of lncome Tax (Appeals)-|, Hyderabad preferred against the Order dated 28-12-2006 passed in PAN/GIR No. AACCS8639Q on the file of the Deputy Commissioner of lncome Tax, Central Circle-1. Hyderabad. Between: The Commissioner of Income Tax (Cenkal), Hyderabad .,.APPELLANT AND M/s. Satyam Computer Services Ltd-, 1-8-303/36, 1"t Floor, I\4ayfair Centre, Secunderabad. ,.,RESPONDENTS I Counsel for the Appellant: Ms. Bokaro Sapna Reddy, Standing Counsel for lncome Tax Counsel for the Respondent: Sri Ch. Pushyam Kiran The Court delivered the following JUDGMENT:

THE HON'BLE SRI JUSTICE P.S"AM KOSHY THE HON'BX,E SRI JUSTICE NARSING &qO NANDIKONDA INCOME TAX TRIBUNAL APPEAL No.15 10F 20L2 JUDGMENT : (per H.'n'hte Sn JusticE p.Sam Kos..y) Heard Ms.Bokaro Sapna Reddy, learned Standing Counsel lor Income Tax, appearing on behallof rhe appellan,. 2- The instant appeal under section 260A.r the lr:,t'orne Ta-x Act, 1961, has been preferred by the Revenue as the appeilant against the order dated 30.O1_2009 passed by the Income Ta_x Appeil:Lte Tribunal, ta Hyderabad "A" Bench. Hyderabad, in I.T.A.No.(r2 4/Hyd/2OOT lor the Assessment Year 1 99t) 2OOO. 3' central Board of Direct Taxes (CBDT) has issued cir-cu1ar No.9 of 2024 dated 17.O9.2024, amending the previous Circular N<_r.S of 2O24 dated 15.o3-2024, by further enhancing the mone rary lirnils rcr filing appeals by the Income Tax Department belbrc the Ir.rcomc Tax Appellate Tribunals, High courts and supreme ()ou1-t as a *easur-e for reducing litigation. In paragraph 2 of |,e said Circuiar, ra,e find that the monetarSz limit fixed for firing an appear belirre the High courl is AND Rs.2.00 crore. I

Page 2 of 3 4. In the irrstant appeal, tax effect is well below the monetary limit. 5. ?'hereiorr--. ihe zr1.ipeal frled by the Revenue is dismissed in terms of the zrlorcsaid Circriiar No.9 of 2024 dated 17.O9.2O24. However, if the appeal cornes rvithin the exception of Circular No.S of 2024, it would be opcn to thc Income Tax Department to seek revival of the appr:al. No costs 6. As a sctiucl, rr:iscellaneous applications pending if any, shall stand closed. SD/.K.SR INI\JASA RAO J INT REGISTRAR /,TRUE COPY' SECTION OFFICER To, VH/PSL Y< 1. The lncome Tax Appellate Tribunal Hyderabad Bench 'A' Hyderabad 2. The Commissioner of lncome Tax (Appeals)-t' Hyderabad 3. The Deputy Commis=ioner of lncome Tax' Central Circle-1 ' Hyderabad' 4. One CC to Ms Bokaro Sapna Reddy' Standing Counsel for lncome Tax loPUCj 5. One CC to Sri Ch' PushYam Kiran' 6. Two CD CoPies ,Advocate tOPUCI / i

:1. : HIGH COURT' DATED: 17lAZl2A25 JUDGMENT lTTA.No.161 of 2012 DISMISSING ITTA ,e x6, I 1i mi m !i ,iE ( 7 )

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