THE COMMISSIONER OF INCOME TAX-III vs. M/S.SEHGAL LEASING AND INVESTMENT LTD

ITTA/257/2007HC TelanganaHBHC01008212200709 August 2023Bench: P.SAM KOSHY,LAXMI NARAYANA ALISHETTY4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The decision was based on the monetary limits for filing appeals as stipulated by the Central Board of Direct Taxes (CBDT) Circular No. 17 of 2019, which amended Circular No. 3 of 2018. This circular aimed to reduce litigation by enhancing monetary thresholds for appeals. The court noted that the monetary limit for filing an appeal before the High Court was Rs. 100 crore. Since the tax effect in the instant appeal was well below this limit, the appeal was dismissed in terms of the circular. However, the court granted liberty to the Income Tax Department to seek revival of the appeal if it falls within the exceptions provided under paragraph 10 of Circular No. 3 of 2018. No order as to costs was made.

What were the facts?

This case involves an Income Tax Tribunal Appeal filed by the Commissioner of Income Tax-III, Hyderabad (the Revenue) against M/s. Sehgal Leasing and Investment Ltd. (the Assessee). The appeal arises from an order dated 13-10-2006 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'A', for the Assessment Year 2001-02. This order was preferred against an earlier order of the Commissioner of Income Tax (Appeals-IV), Hyderabad, which in turn was against an order of the Income Tax ACIT 3(2), Hyderabad. The specific amount in dispute is not explicitly stated in the provided text, but the appeal is filed under Section 260A of the Income Tax Act, 1961.

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 CBDT Circular No. 17 of 2019, amending Circular No. 3 of 2018. The Revenue, through its counsel Mr. J.V. Prasad, argued that the appeal was filed under Section 260A of the Income Tax Act, 1961. The judgment does not record any specific arguments from the Revenue regarding the merits of the case. The Respondent (Assessee) was represented by Sri C.V. Narasimham, but their arguments are not detailed in the provided text. The primary focus of the court's decision appears to be the applicability of the CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

[33861 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYOERABAD 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: 257 OF 2OO7 lncome Tax Tribunal Appeal Under Section 260A of the lncome Tax Act, 1961 arising out of the order of the income Tax Appellate Tribunal, Hyderabad Bench 'A', Hyderabad in ITA No.802/Hydl2OO4, for Assessment Year 200'1-02 dated 1 3-10-2006 preferred against the Order of the Commissioner of lncome Tax , (Appeals-lV), Hyderabad, Appeal No.048/AC-3(1yClT(A)-lV/04-05 ,dated:09-06- 2004 preferred against the Order of the lncome Tax ACIT 3(2) Hyderabad, PAN/GIR No.S E-28, dated 25-03-2004. Between: The Commissioner of lncome Tax-lll, Hyderabad ...APPELLANT AND M/s.Sehgal Leasing and lnvestment Ltd, 6-3-1092, Raj Bhavan Road, Begumpeet, Hyderabad ...RESPONDENT Counset for the Appellant: Mr. J.V. PRASAD, Learned Senior Standing Counsel appearing for SRI T. BALA MOHAN REDDY Counsel for the Respondent: SRI C.V. NARASIMHAM The Court delivered the following: JUDGMENT

THE HON'BLE SRI JUSTICE P.SAM KOSTTY AND THE HON'BLE SRI JUSTICE A. LAXMI NARAYANA I.T.T.A. No.257 of 2007 .IU_pG!4ENT:pr: t Iton hk, S;;1 .tt..:k.e p.SAM KoSHy) iicard \,1r. .J. \ tor the appcllant. Prasad, lcarned Senior SreLnding Counsel ailpe .tr rrtg 2. This apoeal under Section 260A ol the Income Ta_x Act, 1961, has bcen prefcrred bv thc Revenue as the appellant agalnst the order dt.13.10.2006 passed bv thc Incomc Tax Appellate Tribunal. Hyclr:r abad Ilcnch A'. Hyderabacl, in I.T A_No.UO2 /Hyd,l2OOa for the Assessmcnr year 2001-o2. J Centrirl Boartl oi Dirt,t:t Taxes (CBDT) has issued Circu lar irrr:, l7 of 2019 dt.O8.Otl.2Ol9, amcnding the previous Circular N.,.3 ot "0 lg di. I 1.07.20 18, by further t:nhancing the monetar_y limits for filing appeals bt' thc Inconrc lax Dc,partment belorc the lncome Tax Appeltate Tribunals. Hrgh Courts and Su1;reme Court as a measure for reducingl litigatron. In parauraph 2 of the sarcl Circular, we find that the monetarv limit fixed for hling an appeal before the [{igh Court is Rs. l OO cror.e. 4 in the instant a;rpea[, ta-r effect is well below.the rronetarv limir 5. Therefore. thc appeal filed by the l)epartment is dismrssed in rerms of the aforesaid Circular No t7 of 2019 dt.Og.Og.2o19. HowevCr, if the appeal comr:s within rhe exception under paragraph tO of Circular No.3 of 20ltt, it

2 Sd/.K.SRINIVASA RAO JOINT REGISTRAR s SECTION OFFICER \:B rvould bc open to the lncome Tax Department to seek revival o[ the appeal No order as to costs Consequently, miscellaneous petitions pending, if any' shall st2'nd closed 6 ,TRUE COPY// To, 1 2 3 4 tlt karn The lncome Tax Appellate Tribunal' Hyderabad Bench'A', Hyderabad The Commissionei of lncome Tax ' (Appeals-lV), Hyderabad ' The lncome Tax ACIT 3(2) Hyderabad. One CC to SRI T. BALA MOHAN REDDY, Advocate [OPUC] One CC to SRI C.V. NARASIMHAM, Advocate [OPUC] Two CD Copies $- 'rl

HIGH COURT DATED:0910812023 JUDGMENT lTTA.No.257 of 2007 ITTA IS DISMISSED -)o t-\ $r stP$a $G s1-ATE o 1 ( q () -1, +,\.s r ' . , ;i ---. -- -,- -. -':-'- " .r- .s$ )b

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