The Commissioner of Income Tax-III, vs. M/s. Sri. Krishna Drugs Ltd., C-4 IDA,

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ITTA/246/2012HC TelanganaHBHC01065123201218 February 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue was not maintainable. The Court's decision was based on CBDT Circular No. 9 of 2024, which sets the monetary limit for filing appeals before the High Court at Rs. 2.00 crore. As the tax effect in the present appeal was found to be well below this prescribed limit, the appeal was dismissed. However, the Court provided a caveat: if the appeal falls within any exceptions mentioned in 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, and pending miscellaneous petitions were closed.

What were the facts?

This is an Income Tax Tribunal Appeal filed by the Revenue (Commissioner of Income Tax-III, Hyderabad) against an order dated April 30, 2008, passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'B'. The appeal pertains to Assessment Year 2001-02 and challenges an order that originated from the Deputy Commissioner of Income Tax-3(2), Hyderabad, and was subsequently upheld by the Commissioner of Income Tax (Appeals) IV, Hyderabad. The appeal was filed by the Revenue against M/s. Sri Krishna Drugs Ltd. The High Court noted that the tax effect in the instant appeal was well below the monetary limit prescribed by the Central Board of Direct Taxes (CBDT) for filing appeals.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, considering the monetary limits for filing appeals as stipulated by CBDT Circulars. The Revenue, as the appellant, contended that the appeal was filed under Section 260A of the Income Tax Act, 1961. The Court considered CBDT Circular No. 9 of 2024, dated September 17, 2024, which amended Circular No. 5 of 2024, dated March 15, 2024, by enhancing monetary limits for filing appeals. The Circular fixed the monetary limit for filing an appeal before the High Court at Rs. 2.00 crore. The Revenue's appeal was noted to have a tax effect well below this limit. No specific arguments were recorded for the respondent (assessee).

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD TUESDAY, THE EIGHTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEAL No: 246 ol 2012 lncome tax Tribunal Appeal under Section 260-4 of the lncome tax Act, 1961, against the Order of the lncome Tax Appellate Tribunal, Hyderabad Bench B, Hyderabad in ITA No 40/Hydl07 lor Assessment Year 2001-02 dated 30-04-2008, preferred against the Order of the Commissioner of lncome Tax (Appeals) lV, Hyderabad date$ 15-1 1-2006 in Appeal No. 417lDClT.Cu.3(2yClT(A)-lV/2005-06, preferred against the Order of the Deputy Commissioner of lncome Tax-3(2), Hydeiabad dated 30-12-2005 in PAN/GlR No.AADCS40520Q. Between: The Commissioner of lncome Tax-lll, Hyderabad ...Appellant AND M/s, Sri. Krishna Drugs Ltd., C-4 lDA, Uppal, Hyderabad ...Respondent Counsel forthe Appellant: Ms. B. Sapna Reddy, Standing Counsel representing Mr. J. V. Prasad, Senior Standing Counsel for the lncome Tax Department Counsel for the Respondent: Mr. A.V.A. Siva Kartikeya The Court delivered the following: JUDGMENT

':..'.,.;+""V i. :' - .,J ;/.: l THE HONOURABLE SRT JUSTICE P.SAM KOSHY AND THE HONOT]RABLE SRIJUSTICE NARSING RAO NANDIKONDA ITTA No.246 OB 2012 JUDGMENT (per Hon'ble Sri Justice 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 Department for the appellant. Perused the record. 2. This appeal under Section 260,4. of the Income Tax Act, 1961, has been preferred by the Revenue as the appellant against the order dated 30.04.2008 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad, ln I.T.A.No.40/HYD/2007 for the Assessment Year 2001-02. 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 Income Tax Appellate Tribunals, High Courts and Supreme Court ( t

2 as a measure for reducing litigation. In paragraph 2 of the said Circular, we find that the monetary limit fixed for 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 terms of the aforesaid 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 Income Tax Department to - seek revival of the appeal. There shall be no order as to costs. 6. Consequently, miscellaneous petitiohs pending, if any, shall stand closed. Sd/. K. SRINIVASA RAO INT REGISTRAR //TRUE COPY// SECTION OFFICER '1 . The lncome Tax Appellate Tribunal, Hyderabad Bench B, Hyderabad. 2. The Commissioner of Income Tax (Appeals) lV, Hyderabad. 3. The Deputy Commissioner of lncome Tax-3(2), Hyderabad. 4. One CC Mr. J. V. Prasad, Senior Standing Counsel for the lncome Tax Department[OPUC] 5. One CC to Mr. A.V.A. Siva Kartikeya, Advocate [OPUC] 6. Two CD Copies To, kam/PR I I

HIGH COURT DATE D : 1 810212025 JUDGMENT !TTA.No.246 of 2012 DISMISSING OF THE APPEAL ',{E S TA }t- '; Y ic .J .l 2 3 APn 2U5 sr,AT(:seO za t / 1,4 5

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