The Commissioner of Income Tax-III, Hyderabad. vs. R.C.C.Sales Pvt. Ltd.,

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ITTA/233/2007HC TelanganaHBHC01034569200709 August 2023Bench: P.SAM KOSHY,LAXMI NARAYANA ALISHETTY4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal. The Court observed that the monetary limit for filing appeals by the Income Tax Department before the High Court was Rs. 1,00,00,000 (Rs. 1 Crore) as per CBDT Circular No. 17/2019 dated August 08, 2019, and Circular No. 3 of 2019 dated July 11, 2019. The Court noted that the present appeal was filed for Assessment Year 1998-1999 and the order under challenge was dated November 20, 2006. The Court found that the appeal was filed when the monetary limit for filing appeals before the High Court was Rs. 10,00,000 (Rs. 10 Lakhs) as per Circular No. 17 of 2015. The Court further noted that the amount in dispute in the present appeal was Rs. 20,18,633. Since this amount was below the then-applicable monetary limit of Rs. 10 Lakhs, the appeal was considered not maintainable. The Court directed that if the appeal was filed before the issuance of Circular No. 17 of 2015, it would be open to the Income Tax Department to seek revival of the appeal.

What were the facts?

This case involves an Income Tax Tribunal Appeal filed by the Commissioner of Income Tax-III, Hyderabad, against R.C.C. Sales Pvt. Ltd. The appeal challenges an order passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'A', for the Assessment Year 1998-1999. The Tribunal's order was dated November 20, 2006. This order was preferred against an appeal order dated March 29, 2004, passed by the Commissioner of Income Tax (Appeals-III), Hyderabad, which in turn was against an order dated January 29, 2001, passed by the Income Tax Special Range 6, Hyderabad. The appeal was filed under Section 260A of the Income Tax Act, 1961. The High Court noted that the monetary limit for filing appeals by the Department before the High Court was Rs. 1,00,00,000 (Rs. 1 Crore) as per Circular No. 17/2019 dated August 08, 2019, and Circular No. 3 of 2019 dated July 11, 2019, which amended previous circulars to enhance monetary limits for appeals.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the monetary limits prescribed by the CBDT circulars for filing appeals before the High Court? (Question of law) The Revenue contended that the appeal was filed under Section 260A of the Income Tax Act, 1961. However, the judgment does not record specific arguments from the Revenue regarding the maintainability of the appeal in relation to the monetary limits. The judgment does not record any specific arguments from the Respondent (assessee) on this issue.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

[ 3386 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD WEDNESDAY, THE NINTH DAY OF AUGUST TWO THOUSAND AND TWENTY THREE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE A. LAXMI NARAYANA INCOME TAX TRIBUNAL APPEAL No: 233 OF 2007 lncome Tax Tribunal Appeal Under Section 260A of the lncome Tax Act, 1961 arising out of the order of the lncome Tax Appellate Tribunal, Hyderabad Bench 'A', Hyderabad in ITA No.514lHydl2Ol4, for Assessment Year 1998-1999 dated 20-11-2006 preferred against the Order of the Commissioner of lncome Tax , (Appeals-lll), Hyderabad Appeal No.796/DC2(4yClf(A)-lll/02-03 ,dated:29-03-2004 preferred against the Order of the lncome Tax Special Range 6, - Hyderabad, PAN/GlR No.R-76, dated 29-01-2001 . Between: The Commissioner of lncome Tax-lll, Hyderabad. ...APPELLANT AND R.C.C.Sales Pvt. Ltd.,, Plot no.2 and 28, Phase lV, lDA, Jeedimetla, Hyderabad. ...RESPONDENT Counsel for the Appellant: Mr. J.V. PRASAD, Leamed Senior Standing Gounsel appearing for SRI B. NARASIMHA SHARMA, SC FOR lT DEPT. Counsel fcr the Respondent: SRI S. RAVI The Court delivered the following: JUDGMENT

t}{E HON'BLE SRI JUSTICE P.SAM KO S}TY AND T,H ) I{ON'BLE SRI JUSTICE A. LAXI\4I NAFA AIIA I.T.T.A. No.233 of 2OO7 .lVO_Q!4EltT,p ( t, ) t t t ) tt, s,r /, /,r (.r p. sAM Kosryl I I Hea |cl Ir,4 I.r/ n Prasrrrl, k:at ncrl Senior Sta;tdrr-r11 (_otrnsel appezring ur-rder Srrc.tion ll(rrlA of thc Inc rnre ,l a, A<:t. 196 l. has I for the apJ,cllirn 2. 'f his rrpp al becn orcl .rrcd l; r. the d1..10.1 L2{)Otr 1 rsseC br Br:rrch 'B', I lr dr a ra,l, in llevcnuc as the appel ant il,silin:j1 ihe order tlrc Incontr' 'fax Appellr tc l'r b.rnal. Hvderabad I.'t'.A.No :;l'a lHydl'2001 i-lr tlrc ,rs;scssmcnt yci I9!r8 9c,t. 3. Cerr t r:Ll E 20 J() fl1.63 g;3. dr. I i.O7 2(. t8. L bv I lrc lncorrrt: T Higlr Court s itnr palzrgraph .l ( )l: t filllr1l .xr appc:. L 4 In th(,inst 5. 'lherl lirr ,: thc ir firrcs;t r, l r- it.r comt s r,l,iLltirr tlre : d of Dirr ct T:urr.s (CBD1') has i;sue,l r LrcrLlar No. l./ of I9. amcrLding thc previous Circular No.3 of 20ig 'urthcr crrhani:irrg lhe monetarJ lillrrl.s for f ling ai)peals x Ditpartni(.Dt bc1i,r.c Lhe Income l.ax i\1 pc11i|C Tribunals, l'ul)reme (lonrt as ,i measure fo . rcdu c.t t1: Iitigatirtn. In t s:rrd (lir i.,-ririr r.vt' llnd lhirt the ronctar , li-l-ltt fixecl for [, r-c thc I.{:i;ir t)ourr is Ils.l O0 cror:,. aDpr:i.I, tirr eflc( t ts \\ell l)elo\v (lLr. rno:t: itrr Limit l( i1pp{tirl iilcd b.,' t}rt l)cpartrnent s clisrti. scr in rr:r_ms of t rr- No l7 rl ,201(_r dr 08.0g.2019. Ilru.e it,r. i- the appeal ')i.e)tio| rr rdcr ]t:rrirLlraplr i(t ol Cirr tla, .io.ii of 20 ltj. ,t

t_ 2 would be open to the lncome Tax Department to seek revival of the appeal No order as to costs Consequently, miscellaneous petitrons pending' if any' shall stand 6 closed //TRUE COPY// Sd/-K:SRINIVASA RAO JOINT REGISTRAR SECTIO OFFICER To, kam 1. The lncome Tax Appellate Tribunal, Hyderabad Bench 'A" Hyderabad' z. fn" C..rissionei of lncome Tax , (AppealsJll)' Hyderabad' 5. Th" ln"o." Tax Special Range 6, Hyderabad' -^ ;. O;. CC tO SNI A,.NNRASITM"HN SHARMA, SC FOR IT DEPARTMENT toPUCl s. bne CC to SRt S. RAVI, Advocate [OPUC] 6. Two CD CoPies \

HIGH COURT DATED:09108 2023 JUDGMENT !TTA.No.233 ( f 2007 ITTA IS DISMI'JSED $ i:: i*r;:' \ \;.: . r ,,.' .i i \-..:, -' trit!+- /1\t1,.-i+ i , i I i

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