COMMISSIONER OF INCOME TAX-IV vs. M/S MTAR TECHNOLOGIES PRIVATE LIMITED

ITTA/264/2014HC TelanganaHBHC01079137201426 March 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 dismissed in terms of CBDT Circular No.9 of 2024, which enhanced the monetary limits for filing appeals by the Income Tax Department before the High Courts to Rs.2.00 crore. The Court noted that the tax effect in the instant appeal was well below this prescribed monetary limit. The Court also stated that if the appeal falls within any exception provided in Circular No.5 of 2024, it would be open for the Income Tax Department to seek revival of the appeal. No order as to costs was made. The operative direction was the dismissal of the appeal.

What were the facts?

The Revenue, represented by the Commissioner of Income Tax-IV, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 13.04.2010 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'A'. This ITAT order was in relation to ITA.No.1004/HYD/2008 for the assessment year 2005-06, which in turn was preferred against an order of the Commissioner of Income Tax (Appeals-V), Hyderabad. The assessee is M/s MTAR Technologies Private Limited. The appeal was filed by the Revenue before the High Court for the State of Telangana at Hyderabad.

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, for filing appeals before High Courts. The Revenue contended that the appeal was filed in accordance with the law. The judgment does not record specific arguments from the Revenue regarding the merits of the case or any specific exception to the circular. The judgment notes that the tax effect in the instant appeal is well below the monetary limit prescribed by the circular. The assessee's contentions are not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Income Tax Tribunal Appeal Under sectio, 260 of the Income Tax Act, against the order of the Income Tax Appellate Tribunal, Hyderabad Bench ,,A,,, Hyderabad in ITA.No.1004/HYD/}01B for the assessment year 2005-2006 dated 73.04.2070 preferred against the order of the Commissioner of lncome Tax(Appeals-V), Hyderabad, appeal rTA.No.301/DC-16(2)/ CtT(A)-V / 2OO7_OB dated 13.01.2009. HIGH COURT FOR THE STATE OF TELANGANA AT T{\'DERABAD WEDNESDAY, THE TWENTY SIXTH DAY OF MARCH TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRIJUSTICE P.SAM KOSHY AND THE HONOURABLE SRIIUSTICE NARSING RAO NANDIKONDA Income Tax Tribunal ADPeal No.264 o12074 Between Commissioner of Income Tax-IV, IT Towers, A.C.Guards, Hyderabad AND ...Appellant. M/s' MTAR_Technolo€ies Private Limited, No.18, Technocrats Industrial Estate, Balanagar, Hyderabad. Counsel for the Appellant: Ms. B. sapna Reddy, sri. J.v.prasad, r.. ,;Sr"jfondent Counsel ior IT Dept. Counsel for the Respondent Sri K.Vasantkumar. The Court made the following: JUDGMENT

THE HONOURABLE SRIJUSTICE P.SAM KOSHY AND THE HONOURABLE SRIJUSTICE NARSING RAO NANDIKONDA ITTA No.264 OF 2014 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 260A of the Income Tax Act, 1961, has been preferred by the Revenue as the appellant against the order dated 13.04.2010 passed try the Income Tax Appellate Tribunal, Hyderabad Bench 'A', Hyderabad, ln I.T.A.No. 10041[yd12008 for the Assessment Year 2005-06 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 fuither enhancing the moneLary limits f,or filing appeals by the Income Tax Department before the Income Tax Appellate Tribunals, High Courts and Supreme Court t t .. -.. ----= \ I

z 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 Coun 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 [ncome Tax Department to seek revival of the appeal. There shall be no order as to costs 6, Consequently, miscellaneous petitions pending, if any, shall stand closed. SD/. K. SRINIVASA RAO JOINT REGISTRAR //TRUE COPY// SECTION OFFICER To, 1. The Income Tax Appellate Tribunal, Hyderabad Bench " A", Hyderabad 2. The Commissioner of Income Tax(Appeals-V), Hyderabad. 3. One CC to Sri B.Narasimha Sarma, Advocate [OPUC] 4. One CC to Sri K.Vasantkumar, Advocate [OPUC] 5. Tno CD Copies. PHKR/gh I I

HIGH COURT DATED:26/a3/2025 IUDGMENT ITTA.No.264 of 2074 Dismissing the I.T.T. A. n,ithout costs I r1l'- S I,1 r( c 1." . '. / .ra il.,- 21 AUE v \$.,,,..,-,, \_._E:::. 2025 ,/ ot I bl { I

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