THE COMMISSIONER OF ICNOME TAX III, HYDERABAD. vs. M/S SOFTPRO SYSTEMS [P] LTD. HYDERABAD.

ITTA/257/2010HC TelanganaHBHC01072204201006 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 decision was based on CBDT Circular No. 9 of 2024, dated September 17, 2024, which amended Circular No. 5 of 2024, dated March 15, 2024, by enhancing the monetary limits for filing appeals. The Court noted that the tax effect in the instant appeal was well below the prescribed monetary limit of Rs. 2.00 crore for filing appeals before the High Court. The Revenue was granted liberty to seek revival of the appeal if it falls within any exception provided in Circular No. 5 of 2024. No costs were awarded. The operative direction was to dismiss the appeal.

What were the facts?

This case involves an appeal filed by the Commissioner of Income Tax III, Hyderabad (the Revenue) against an order dated January 29, 2008, passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. The ITAT's order was in relation to ITA No. 605/Hyd/2002 for the Assessment Year 1998-99. The appeal preferred by the Revenue before the High Court is under Section 260A of the Income Tax Act, 1961. The dispute originated from an assessment order dated March 28, 2001, passed by the Deputy Commissioner of Income Tax, Hyderabad, and was subsequently appealed to the Commissioner of Income Tax (Appeals)-IV, Hyderabad, whose order dated March 28, 2002, was challenged before the ITAT.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, given the monetary limits prescribed by CBDT Circulars for filing appeals. The Revenue, represented by Ms. Bokaro Sapna Reddy, Standing Counsel for Income Tax, appeared before the High Court. The judgment does not record specific arguments from the Revenue regarding the merits of the case. However, the appeal itself is based on challenging the ITAT's order. The Respondent, M/s Softpro Systems [P] Ltd, does not have counsel listed, and their arguments are not recorded in the judgment. The primary basis for the High Court's decision appears to be the applicability of a CBDT Circular regarding monetary limits for filing appeals.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

13447 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY, THE SIXTH 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: 257 OF 2010 Appeal filed under Section 260(4) of the lncome-Tax Act, against the order dated.29-01-2008 passed in lTA.No.605/Hydt2002 (Assessment year 1998-99) on the file of the lncome Tax Appellate Tribunal Hyderabad Bench 'B', Hyderabad preferred against the Order dated: 28-O3-2OO2 passed in Appeal No.719/DC- 7(7yClT(A)lV/01-02 on the file of the Commissioner of lncome Tax (Appeals)-lV, Hyderabad preferred against the Assessment Order dated: 28-03-2001 passed in PAN/GIR No. SO 13 on the file of the Deputy Commissioner of lncome Tax, lncome Tax Department, Hyderabad. Between: The Commissioner of lncome Tax lll, l.T.Towers, A.C.Guards, Masab Tank, Hyderabad. ...APPELLANT AND IVI/s Softpro Systems [P] Ltd,401/8, Software Technology Park, HUDA Complex, Ameerpet, Hyderabad. ...RESPONDENT Counsel for the Respondent: ------ The Court delivered the following: JUDGMENT Counsel for the Appellant: Ms. BOKARO SAPNA REDDY, S.C. FOR INCOME TAX

(L t I THE HON'BLE Szu JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEAL No.257 OF 2O1O JUDGMENT: (per lton'ble Sri Justrce P-Sam Koshg) Heard Ms.Bokaro Sapna Reddy, learned Standing Counsel for Income Tax. appearing on behalf of the appellant. 2. The instarrt appeal under Section 260A of the Income Tax Act, 1961, has been preferred by the Revenue as the appellant against the order dated 29.O1.2OOa passed by the Income Tax Appellate Tribunal, Hyderabad "B" Bench, Hyderabad, in I.T.A.No.6OS|Hvdl2OO2 1bt Lhe t I Assessment Year 1998-99. 3. Centrzrl Board of Direct Taxes (CBDT) has issued Circular No.() of 2024 dated 77.O9.2O24, amending the previous Circular No.S of 2024 dated 15.03.2024, by further enhancing the monetary limits for filing appeals by the Income Tax Department before the Income 'i'rui Appellate Tribunals, High Courts and Supreme Court as a measurc for reducing litigation. In paragraph 2 of the said Circular, rl,e find that the monetary limit fixed for filing an appeal before the High Court is ' Rs.2.OO crore.

Page 2 of 3 4. ln the instant appeal, tax effect is well below the monetar5z limit. 5. 'lherefore, the appeal filed by the Revenue is dismissed in terms of Lhr: aforesaid Circular No.9 of 2024 dated 17.09.2024. However, if tlri: aplreal comes within the exception of Circular No.5 of 2024, it wourld be open to the Income Tax Department to seek revival of the apoca1. No costs. 6. As a sequel, miscellaneous applications pending if ariy, shafl stand closed. Sd/- K. SRINIVASA RAO JOINT REGISTRAR ECTION OFFICER To, '1 . The lncome Tax Appellate Tribunal Hyderabad, Bench 'B" Hyderabad i. rn" Co*rissionei of lncome Tax (Appeals)-lV' Hyderabad 5. ri'l" o"prtv Commissioner of lncome Tax' lncome Tax Department' HYderabad. 4. One CC to Ms. Bokaro Sapna Reddy' S C for lncome Tax [OPUC] 5. Two CD CoPies Plp/ghw I //TRUE COPY// I ----- I \

HIGH COURT DATED:0610212025 JUDGMENT ITTA.No.257 of 2010 DISMISSING THE APPEAL 1r'.. - ) ) 21 t{Ai\ 2[25 \tt T cEspnit, { b @

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