THE COMMISSIONER OF INCOME TAX vs. LAVU EDUCATIONAL SOCIETY

ITTA/190/2011HC TelanganaHBHC01002785201110 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 Circular No. 9 of 2024 dated September 17, 2024, which amended Circular No. 5 of 2024 dated March 15, 2024, by enhancing the monetary limits for filing appeals by the Income Tax Department. The circular sets the monetary limit for filing an appeal before the High Court at Rs. 2.00 crore. The court noted that the tax effect in the instant appeal was well below this monetary limit. The court also stated that if the appeal falls within the exceptions of Circular No. 5 of 2024, the Income Tax Department would be at liberty to seek revival of the appeal. No order as to costs was made.

What were the facts?

The Commissioner of Income Tax, Hyderabad (Revenue) filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated August 24, 2007, passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. The ITAT's order pertained to the block period from 1990-91 to 1999-2000 and from April 1, 2000, to February 20, 2001. The appeal was preferred against an order dated November 30, 2005, passed by the Commissioner of Income Tax (Appeals), Guntur, which in turn was against an order dated October 31, 2003, passed by the Assistant Commissioner of Income Tax, Central Circle - 2, Hyderabad. The assessee is Lavu Educational Society. The appeal was filed by the Revenue.

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. (Question of law) Contentions: Assessee: No arguments recorded for the assessee. Revenue: The Revenue filed the appeal against the ITAT's order. The judgment does not record specific arguments made by the Revenue regarding the maintainability of the appeal or the merits of the case, but it is implied they sought to press the appeal.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

13447 | IN THE HIGH GOURT FOR THE STATE OF TELANGANA AT HYDERABAD MONDAY, THE TENTH DAY OF FEBRUARY 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: 190 OF 2011 lncome Tax Tribunal Appeal Under Section 2604 of the lncome Tax Act,1961 against the Order dated 24-08-2007 passed in |T(SS)A.NO.681H12006 for the Block period 1990-91 to 1999-2000 & from 01.04.2000 to 20.02.2001 on the file of the lncome Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad preferred against the Order dated 30-1 1-2005 passed in ITA No.0218/C|T(A)/GNT/04-05 on.the file of the Commissioner of lncome Tax (Appeals) Guntur preferred against'the Order daled 31-10-2003 passed in P A N /G.l.R. No.L-610 on the file of the Assistant Commissioner of lncome Tax, Central Circle - 2, Hyderabad. Between: The Commissioner of lncome Tax, Hyderabad AND ...Appellant Lavu Educational Society, Vignan, D.No.5-37-21 3, 4/7, Brodipet, Guntur. ...Respondent Counsel for the Appellant: Ms. Sapna Reddy representing Sri J V Prasad, Sc for lncome Tax Counsel for the Respondent: Sri Challa Gunaranjan The Court delivered the following: Judgment I

-7 THE HONOURABLE SRIJUSTICE P.SAM KOSHY AND THE HONOURABLE SRIJUSTICE NARSING RAO NANDTKONDA ITTA No. 190 0F 20u JUDGMENT (per Hon'ble Sri Ju.ttice p.Sam Koshy) Heard Ms. B.Sapna Reddy, leamed Junior Standing Counsel representing Mr. J.V.prasad, leamed Senior Standing Counsel for the Income Tax Deparlment for the appellant. perused the record. 2. This appeal under Section 260.4 of the lncome Tax Act, 1961, has been preferred by the Revenue as {he appellant against the order dated 24.0g.2007 passed by the Income Tax Hyderabad Bench B" I{yderabad, ln I.T (S.S).No.6B/Hydl2006 for the block period 1990_91 to 1999_ 2000 and from 01.04.2000 to 20.02.2001. 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 limits for filing appeals by the Income Tax Department before the Appellate Tribunal, \ t I

\_i, \ Income Tax Appellate Tribunals, High Courts and Supreme Court as a measure for leducing litigation. In paragraph 2 of the said Circular, we find that the monetary limit fixed fior 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 tems of the aforesaid Circular No.9 of 2024 dated 17.09.2024. However, if the appeal cornes within the exception of Circular No.5 of 2024, it would be open to the Income Tax Department to seek revival olthe appeal. Thcre shall be no order as to costs. 6. Consequently', miscellaneous petitions pending, if any, shall stand closed- Sd/- K. SRINIVASA RAO //TRUE COPYII JOINT REGISTRAR EEION OFFICER To, -1. The lncome Tax Appellate Tribunal, Hyderabad Bench ,Bl, Hyderabad 2. Commissioner of lncome Tax (Appeals) Guntur 3. The Assistant commissioner of rncome Tax, centrar circre j 2, Hyderabad 4. One CC to Sri J V prasad, Sc for lncome Tax [OpUC] 5. One CC to Sri Chaila Gunaranjan, Advocate tOpUCl 6. Two CD Copies ADKtshgt

II HIGH COURT DATE D: 1 010212025 IHE S.lAt (.,^ e ( t , 'r' JUDGMENT lTTA.No.190 of 2011 DISMISSING THE ITTA WITHOUT COSTS 11 unn zms 5r r'.rrf c , t S.,t': -=2' O \

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