THE COMMISSIONER OF INCOME TAX-IV, HYDERABAD vs. M/S. MODEL CHIT CORPORATION LTD., HYDERABAD

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ITTA/269/2011HC TelanganaHBHC01016439201110 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 dismissed in terms of CBDT Circular No. 9 of 2024 dated September 17, 2024. This circular sets the monetary limit for filing an appeal before the High Court at Rs. 2.00 crore. The Court noted that the tax effect in the instant appeal was well below this monetary limit. The Court further stated that if the appeal falls within the exceptions of 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. The Court did not decide the substantive issues of the appeal on merits.

What were the facts?

The Revenue, Commissioner of Income Tax-IV, Hyderabad, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated January 31, 2007, passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. This order pertained to Assessment Year 2000-01. The appeal was preferred against an order dated March 10, 2004, by the Commissioner of Income Tax (Appeals-III), Hyderabad, which in turn was against an assessment order dated March 31, 2003, passed by the Assistant Commissioner of Income Tax, Circle-2(2), Hyderabad. The assessee is M/s. Model Chit Corporation Ltd.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the monetary limits prescribed by the Central Board of Direct Taxes (CBDT) for filing appeals. The Revenue contended that the appeal should be considered based on its merits. The Revenue relied on CBDT Circular No. 9 of 2024 dated September 17, 2024, which amended Circular No. 5 of 2024 dated March 15, 2021, enhancing monetary limits for appeals. The judgment does not record any specific arguments from the assessee on this point, other than their status as Respondent.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

'::-.r+ f. .$ t 134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD MONDAY, THE TENTH 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: 269 OF 2011 Appeal filed under Section 260(4) of the lncome-Tax Act, against the order dated. 3l-0 1-2007 passed in lTA.No. 562lHydl2004 (Assessment year 2000-01) on , the file of the lncome Tax Appellate Tribunal Hyderabad Bench 'B', Hyderabad preferred against the Order dated: '10-03-2004 passed rn Appeal No.61/AC'T 2(2) /ClT(A)-llU03-04) on the file of the Commissioner of lncome Tax (Appeals-lll), Hyderabad preferred against the Assessment Order dated: 3l-03-2003 passed in PAN/GIR No. AABCM3920B1M-O44 on the file of the Assistant Commissioner of I ncome Tax Circle-2(2), Hyderabad. Between: The Commissioner of lncome Tax-lV, Hyderabad AND ...APPELLANT lvl/s. Model Chit Corporation Ltd., 201, 20B,2nd floor Model House, Punjagutta, Hyderabad .,.RESPONDENT Counsel for the Appellant: Ms. B. SAPNA REDDY, JUNIOR S.C. REP. FOR SRI J, V. PRASAD, S,C. FOR INCOME TAX DEPT. Counsel forthe Respondent: SRI K. VASANTKUMAR The Court made the following: JUDGMENT

,,.--=*7 I I I I THB HONOURABLE SRIJUSTICE P.SAM KOSHY AND THf], HONOTIRABLE SRI JUSTICE NARSING RAO NANDIKONDA ITTA No.269 OF 20r1 JUDGlvlENT (per Hon'ble Sri Juslice P.Sam Koshy) Heard Ms. B.Sapna Reddy, leamed Junior Standing Counsel representing Mr. J.V.Prasad, learned Senior Standing Counsel for the lncome Tax Deparlment for the appellant. Perused the record 2. This appeal under Section 260A of the Incorne Tax Act. 1961, has been prefered by the Revenue as the appellant against the order dated 31.01.2007 passed by the Income Tax Appellate Tribunal, Hyder:abad Bench 'B', Hyderabad, I1l I.T.A.No. 5 62r'Hy d12004 for the Assessrnent Year 2000-0 1 . 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 15.03.2021,by further enhancing the monetary limits for filing appeals by the Income Tax Department before the Income Tax .Appellate llribunals, I-Iigh Courts and Supreme Couri.

2 as a rReasure for reducing iitigation' In paragraph 2 of the said circular, we find that the monetary limit frxed 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 hled by the Department is dismissed in i,erms 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 Depaftment to seek revival ofthe appeal. There shall be no order as to costs' 6. Consequently, miscellaneous petitions pending' if any' shall stand closed. //TRUE COPY// Sd/. K. SRINIVASA RAO JOINT REGISTRAR SECTION OFFICER To, 1 . The lncome Tax Appellate Tribunal Hyderabad Bench '8" Hyderabad i. ft'" Corrissionei of lncome Tax (Appeals-lll)' Hyderabad 5. fn" Aitiitunt Commissioner of Income Tax Circle-2(2)' Hyderabad' +. On" CC to Sri J. V. Prasad, S C for lncome Tax-[OPUC] S. On" CC to Sri K. Vasantkumar, Advocate [OPUC] 6. Two CD CoPies Plp/gh lP

HIGH COURT DATED:1010212025 JUDGMENT ITTA.No.269 of 2011 DISMISSING THE APPEAL 4.q o I |i liAB ?025 tr \) 'i ... . !t\ r6' c) i + (/ -qi, -a I c *]. ., ila{

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