The Commissioner of Income Tax - III vs. M/s. BGS - SGS - SOMA (JV)

ITTA/212/2012HC TelanganaHBHC01062192201217 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 primary reason for dismissal was that the tax effect in the instant appeal was well below the monetary limit stipulated by the Central Board of Direct Taxes (CBDT) in Circular No. 9 of 2024, which amended Circular No. 5 of 2024. This circular enhances monetary limits for filing appeals by the Income Tax Department to reduce litigation, fixing the limit for High Court appeals at Rs. 2.00 crore. The Court held that the appeal was not maintainable based on this circular. However, the Court provided a rider that if the appeal falls within any exception provided in Circular No. 5 of 2024, the Income Tax Department would be at liberty to seek revival of the appeal. No costs were awarded. All pending miscellaneous applications were also closed.

What were the facts?

The Revenue, represented by the Commissioner of Income Tax - III, filed an appeal before the High Court of Telangana at Hyderabad against an order dated 08.06.2011 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'A'. This ITAT order was in relation to ITA No. 1320/Hyd/10 for the Assessment Year 2007-08. The appeal was preferred against an order dated 13.08.2010 by the Commissioner of Income Tax (Appeals)-IV, Hyderabad, which in turn was against an order dated 24.12.2009 passed by the Assistant Commissioner of Income Tax, Circle-6(1), Hyderabad. The assessee is M/s. BGS - SGS - SOMA (JV). 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, amending Circular No. 5 of 2024. The Revenue argued that the appeal was filed under Section 260A of the Income Tax Act, 1961. The judgment does not record specific arguments from the Revenue regarding the merits of the case. The judgment notes that the tax effect in the instant appeal is well below the monetary limit fixed for filing an appeal before the High Court as per the aforementioned Circular. The judgment does not record any arguments from the Respondent (assessee).

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

13447 1 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD MONDAY, THE SEVENTEENTH 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:212 OF 2012 lncome Tax Tribunal Appeal under Section 260,4 of the Income Tax Act, 1961 against the Order dated 08.06.20'1 1 passed in lTA.No.1320/Hyd/'10, for the Assessment Year 2007-08, on the file of the lncome Tax Appellate Tribunal, Hyderabad Bench 'A', Hyderabad, preferred against the Order dated 13-08.20'10 on {' ,1 the file of the Commissioner of lncome Tax (Appeals)-lV, Hyderabad, in Appeal,No.362/ACIT 6(1)/ClT(A)-lV/O9-10 preferred against the order dated 24.12.2009 passed in PAN No. A,iqituAB3714FlB-354 on the file of the Assistant Commissioner bf lncome tax, Circle-6(1), Hyderabad. Between: The Commissioner of lncome Tax - lll, lT Towers, A.C. Guards, Hyderabad. ...Appellant AND M/s. BGS - SGS - SOMA (JV), Dr. No. 8-2-6231511 , 14 Avenue, Banjara Hills, Hyderabad. ...Respondent Counsel for the Appellant : Ms. Bokarao Sapna Reddy, Standing Counsel for lncome tax Counsel forthe Respondent : Sri T. Bala Mohan Reddy The Court delivereci the folloring:

I I THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'B],E SRI JUSTICE NARSING RAO NANDIK{)NDA INCOME TAx TRIBUNAL APPEAL No.212 OF 20 12 JUDGMENT: be. H< n bb sn rustice p.sam Kosh!) Heard Ms.Bokaro Sapna Reddy, learncd Standing (ounsel lor Income Tax, appe tring on behalf of the appellanr. 2. The instant appeal under Section 260A of the Inr:on'e Tax Act, 1961, has been p -r:ferred by the Revenue as the appcl1ar.ri, riflainst the order dated 08.06.:2011 passed by the Income Tax Apptiirr,r Tnbunal, Hyderabad '4" Bench, Hyderabad, in I.T.A.No.1320 /Ltvo I )(t1O for the Assessment Y ea:r'.l!O7 -2OO8. 3. Central Boarcl of Direct Taxes (CBDT) has issued Ciri'r.: iair No.9 of 2024 dated 17.O9 2024, amending the previous CircrLliri Nr .li of 2024 dated 15.O3.2024 by further enhancing the motreterry iir,:rts ibr filing appeals by the l]tcome Tax Department beioi:e the lrr:ome .i.ax Appeilate Tribunals, High Courts ald Supremc Court as i:- rr easur-e for reducing litigation. In paragraph 2 of the saii Circular, -,...r. finci that the monetary limi: fi,xed for hling an appeal beforc the FIrg r Court is Rs.2.O0 crore. I I

I Page 2 of 3 4. In the instant appeal, tax effect is well below the monetary limit. 5. Therefore, the appeal frled by the Revenue is dismissed in terms of the aforesaicl Circr:iar No.9 of 2024 dated 77.09.2024. However, if the appeal comes within the exception of Circular No.5 of 2024, it would be open to thi: Income Tax Department to seek revival of the appeal. No costs- 6, As a scquel, nriscellaneous applications pending if any, shall stand closed Sd/. K. SRINIVASA RAO INT REGISTRAR //TRUE COPY// S GTION OFFICER To, 1. The lncome Tax Appellate Tribunal' Hyderabad Bench 'A" Hyderabad' i. il; il;;lssionei of lncome Tax (Appeals)-lV' Hvderabad i. i'n" n..i.i"ni corn'nit'ionti ot lniome tax' circle-6(1)' Hyderabad' 4. one GC to tVls. aor"rro i;pna Reddy, Standing counsel for lncome tax [OPUC] s o"JLc1"'SriT Bala tt/lohan Reddy' Advocate [oPUC] 6. Two CD CoPies DL/PSL

\ {,' HIGH COURT DATED:1710212025 lTTA.No.212 o12012 \.? \r- .' 1. ;ijl ra\\r:\'_ \\:= =l=---2 0i APB Az.i .i' D! JUDGMENT )\(i t J Za\ (. DISMISSING THE APt)EAL

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