The Commissioner of Income Tax (ITandTP) vs. M/s. Midwest Granites Pvt. Ltd.,

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ITTA/204/2022HC TelanganaHBHC01039553202204 August 2025Bench: P.SAM KOSHY,S.CHALAPATHI RAO4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue was dismissed in terms of CBDT Circular No. 9 of 2024, dated 17.09.2024. The reasoning was that the tax effect in the instant appeal was well below the monetary limit of Rs. 2 crore fixed for filing appeals before the High Court. The Court stated that if the appeal came within the exception of Circular No. 5 of 2024, it would be open to the Revenue to seek revival of the appeal. No costs were awarded. The operative direction was the dismissal of the appeal.

What were the facts?

The Revenue, as the appellant, filed an appeal before the High Court of Telangana at Hyderabad against an order dated 16-12-2021 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad 'A' Bench. The appeal pertained to Assessment Year 2004-05 and was filed by the Commissioner of Income Tax (IT&TP), Hyderabad, against M/s. Midwest Granites Pvt. Ltd. The appeal was filed under Section 260A of the Income Tax Act, 1961. The High Court noted that the Central Board of Direct Taxes (CBDT) had issued Circular No. 9 of 2024, dated 17.09.2024, which amended Circular No. 5 of 2024 and enhanced the monetary limits for filing appeals by the Income Tax Department. The monetary limit for filing an appeal before the High Court was fixed at Rs. 2 crore.

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 CBDT circulars for filing appeals. The Revenue contended that the appeal was filed under Section 260A of the Income Tax Act, 1961. The judgment does not record any specific arguments made by the Revenue regarding the maintainability of the appeal beyond the fact of its filing. The High Court, in its decision, relied on the CBDT Circular No. 9 of 2024. The Respondent (assessee) did not present any arguments as recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

[ 348e ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD MONDAY, THE FOURTH DAY OF AUGUST N/VO THOUSAND AND TWENry FIVE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE SUDDALA CHALAPATHI RAO INCOME TAX TRIBUNAL APPEAL NO: 204 OF 2022 Appeal under section 260A of the lncome Tax Act, 196 1 aggrieved by the order dated 16-12-2021 in ITA No.723lHydl2013 on the file of the lncome Tax Appellate Tribunal, Hyderabad 'A' Bench, Hyderabad. Between: The Commissioner of lncome Tax (|T&TP), Hyderabad. ...Appellant AND M/s. Midwest Granites Pvt. Ltd., D.No.8-2-684/3125 &26, Road No.t2, Banjara Hills, Hyderabad PAN AAACM9486D ...Respondent Counsel for the Appellant: Mr. Vijhay K. Punna, Senior Standing Counsel for lncome Tax Department Counsel for the Respondent: M/s. MN Advocates The Court delivered the following: JUDGMENT

THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE SUDDALA CHALAPATHI RAO INCOME TAX TRIBUNAL APPEAL No.204 of 2022 JUDGMENT (per thc ltan bte Sfl Justice P-Sam Kosfui) Heard Mr. Vijhay K. Punna, leamed Senior Standing Counsel for Income Tax Department appearing on behalf of the appellant, and learned counsel for the respondent 2. The instant appeal under Section 260.4. of the Income Tax Acl, 1961, has been preferred by the Revenue as the appellant against the order datec 16.12.2021,, passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'A', I{yderabad, in I.T.A.No.723ft1ydl20l3 for the Assessment Year 2004-05. 3. Central Board of Direct Taxes (CBDT) has issued Circular No.9 of 2024 dated 17.09.2024, arnending the previous Circular No.5 of 2024 dated 15.03.2024, by further enhancing the monetary limits for hling appeals by the lncome Tax Deparlment belore the Income Tax Appellate Tribunals, High Coufts and Strpreme Court as a measure for reducing litigation. ln paragraph 2 of the said Circular. we find that the monetary limit fixed for filing an appeal before the High Court is Rs.2 crore.

Page 2 ol2 4. In the instant appeal, tax eff-ect is well below the monetary limit 5. Therefore, the appeal hled by the Revenue is dismissed in tenns of the afbresaid 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 Revenue to seek revival of the appeal. No costs. 6. As a sequel, miscellaneous petitions pending if any, shall stand closed. Sd/- N. CHANDRA SEKHAR RAO S STANT REGISTRAR //TRUE COPY// ECTION OFFICER To, '1 . The lncome Tax Appellate Tribunal, Hyderabad' 2. One CC to Mr. Vijhay K. Punna (SENIOR SC FOR ITD) [OPUC] 3. One CC to M/s. MN. Advocates [OPUC] 4. Two CD Copies Kam/PSL (r

HIGH COURT DATED:0410812025 JUDGMENT !TTA.No.204 of 2022 DISMISSING OF THE APPEAL GCO*<e* ,;'.2-: J,1*I\ i] 1E SEP M6 CA-,(r. . . - .:/ X-\o I .i

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