THE COMMISSIONER OF INCOME TAX (CENTRAL) vs. M.P.B.KUTUMBA RAO

ITTA/290/2015HC TelanganaHBHC01066494201528 February 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the tax effect in the instant appeal was well below the monetary limit of Rs. 2.00 crore, as prescribed by CBDT Circular No. 9 of 2024 for filing appeals before the High Court. Consequently, the appeal filed by the Revenue was dismissed. The Court also noted that if the appeal fell within any exception provided in Circular No. 5 of 2024, the Income Tax Department would be at liberty to seek revival of the appeal. No costs were awarded. The operative direction was to dismiss the appeal.

What were the facts?

The Revenue, as the appellant, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 19.12.2013 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'A', for the Assessment Year 2004-2005. The appeal was filed by the Commissioner of Income Tax (Central), Hyderabad, against M/s. P.B. Kutumba Rao. The High Court noted that the Central Board of Direct Taxes (CBDT) had issued Circular No. 9 of 2024, amending Circular No. 5 of 2024, to enhance monetary limits for filing appeals to reduce litigation. The monetary limit for filing an appeal before the High Court was fixed at Rs. 2.00 crore.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, considering the monetary limit prescribed by CBDT Circular No. 9 of 2024? (Question of law) The Revenue contended that the appeal was filed against an order of the ITAT. The judgment does not record specific arguments from the Revenue regarding the merits of the case or any exceptions to the circular. The Respondent (assessee) did not present any arguments as recorded in the judgment. The High Court's decision was based on the monetary limit stipulated in the CBDT circular.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

lncome Tax Tribunar Appear Under section 2604 of the lncome Tax Act,1g6i against the Order dated 19-12-2013 passed in CO No.42lH/2010 (in ITA No.741/H12010) for the Assessment year 2004-2005 on the file of the lncome Tax Appellate Triblnal, Hyderabad Bench 'A', Hyderabad. 134471 HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD FRIDAY,THE TWENTY EIGHTH 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: 290 OF 2015 THE COMMTSSTONER OF INCOME TAX (CENTRAL), Hyderabad. ...APPELLANT Between: AND fvt-.P.B KUTUMBA RAO, B-2_293t82tJ_|\ ptot No.244, Road No.78, Jubilee Hllls, Hyd. ...RESPONDENT Counsel for the Appellant: Ms. Bokaro Sapna Reddy, Rep.SRl J V PRASAD (SC FOR INCOME TAX) Counsel for the Respondent: SRI A V A SIVA KARTIKEYA The Court made the following: JUDGMENT

THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON,BLE SRI JUSTICE TRIBUNAL O NANDIKONDA oF 2015 NARSING RA APPEAL No.29O INCOM JUDGMENT: bet Hon'bte sn Justice P sam Koshs) Heard Ms.Bokaro Sapna Reddy' learned Standing Counsel for Income Tax, appearing on behalf of the appcllant' 2. The instant appeal under Section 260A of the Income Tax Act' 1961, has been preferred by the Revenue as the appellant against the order dated 1g.12.201,3 passed by the Income Tax Appellate Tribunai' Hyderabad..A,,Bench,Hyderabad,inI.T.A.No.T4llHyd/2oloforthe Assessment Year 2O04-O5' 3. Central Board of Direct Taxes (CBDT) has issited Circular No 9 of 2024 dated' 17.Og.2024, amending the previous Circular No 5 of 2024 dated 15.O3.2 O24, by further enhanr:ins ihe monetary limits frrr filing appeals by the Income Tax Department bcfore the lncome Ta-x Appellate Tribunals, High Courts and Suprt:me Court as a meersttrc frrr reducing litigation. tn paragraph 2 of the said Circular' we lind that the monetary limit hxed for frling an appeai beforc the High Court is Rs.2.O0 crore E TAX

Page 2 of 3 4 In the instant appeal, tax effect is well below the monetary limit' 5. Thcrefore, the appeal hlcd by the Revenue is dismissed in terms of the aforesaid Circular No'9 of 2024 d'ated 17 'Og '2024 ' However' if the appeal comes within the exception of Circular No'5 of 2024 ' it would be open to the Income Thx Department to seek revival of the appeal. No costs. 6. As a sequcl, miscellaneous applications pending if any' shall ,Rt'AI[["#jH stand closed. Two CD CoPtes /TTRUE COPY'/ SD'. ECTION OFFICER To, 1 The lncome Tax Appeltate Tribunal' Hyderabad Bench 'A" Hyderabad' one cc to. sRl J v PRA'A; ;; FoR lNcoME rAX) Advocate toPucl One CC to SRI A V A SIVA KARTIKEYA Advocate IOPUC] 2. J 4 TPK-/ghw

HIGH COURT DATED:2810212025 JUDGMENT ITTA.No.29O of 2015 ITTA IS DISMISSED 21 rlJB zffi -:.- ,5Ir1,. ( e i t t D65PATcH tr0 Gr@ K- eGtr,

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