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

ITTA/294/2011HC TelanganaHBHC01047989201112 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 dismissal was based on the monetary limits for filing appeals as prescribed by CBDT Circular No. 9 of 2024, dated 17.09.2024, which amended Circular No. 5 of 2024. The Court noted that the tax effect in the instant appeal was well below the monetary limit of Rs. 2.00 crore fixed for filing appeals before the High Court. The Court also stated that if the appeal fell within the exceptions of Circular No. 5 of 2024, the Income Tax Department could seek revival of the appeal. No costs were awarded. Any pending miscellaneous applications were also closed.

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 02.04.2008 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B', for Assessment Year 2003-2004. The ITAT's order was preferred against the order dated 31.10.2006 passed by the Commissioner of Income Tax (Appeals)-V, Hyderabad, which in turn was against the assessment order dated 30.03.2006 passed by the Assistant Commissioner of Income Tax, Circle 16(2), Hyderabad. The assessee is M/s Model Chit Corporation Ltd. The appeal was filed against the order of the ITAT.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, considering the monetary limits for filing appeals as stipulated by the Central Board of Direct Taxes (CBDT) Circulars. Assessee's Contention: The judgment does not record any specific contentions from the assessee regarding the merits of the case. The appeal was decided based on a procedural aspect related to CBDT circulars. Revenue's Contention: The Revenue filed the appeal under Section 260A of the Income Tax Act. The judgment notes the Revenue's appearance through its Standing Counsel. The primary argument, implicitly, is that the appeal should be heard on its merits, unless barred by any procedural rule. However, the judgment focuses on the applicability of CBDT Circular No. 9 of 2024.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

13447 l IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAiD WEDNESDAY, THE TWELFTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HON'BLE SRI JUSTTCE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEAL No: 294 of 2O1'l Appeal filed under section 260(A) of the rncome-Tax Act, against the order dated 02-04-2008 passed in trA.No.15/Hydt2o07 for the assessment year 2003- 2004 on the file of the Income Tax Appefiate Tribunar Hyderabad Bench ,8', Hyderabad preferred against the order dated 31-10-2006 passed in rrA No. 06.r/AC- 16(2)lclr(A)-v12006-07 on the fire of the commissioner of rncome Tax (Appears)-V, Hyderabad preferred against the Assessment order dated .r 0-3-2006 passed rn PAN/GIR No. AABCM 392oBlM44 on the file of the Assistant commissioner of lncome Tax, Circle 16(2), Hyderabad. Between: The Commissioner of lncome Tax-lV, Hyderabad ...Appellant AND M/s Model Chit Corporation Ltd.,2O1 ,2Og,2nd Floor, Model House, punjagutta, Hyderabad. ...Respondent Counsel for the Appellant: Ms. Bokaro Sapna Reddy, on behalf of M/s. J.V. Prasad (Senior Standing Counsel for lncome Tax) Counsel for the Respondent: Sri K. Vasant Kumar The Court delivered the following: JUDGMENT

THE HON 'BLE SRI JIISTICE P.SAM KOSHY THE HON'BLE SRI JUSTTCE NARSIiIG RAO NANDIKONDA INCOME T.AX TRIBUNAL APPEAL No.294 oF 2011 JUDGMENT AND lper Ha.,'bt. Sn Justrce P.Sam Koshgl Heard Ms.Bokaro Sapna Reddy, Iearned Standing Counsel for Income Tax, appearing on behalf of the appellant. 2. The instant appeal under Section 260A of the [ncome Tax Act, 1961, has been preferred by the Revenue as the appellant against the order dated 02.O4.21)08 passed by the Income Tax ltppellate Tribunal, Hyderabad '8" Ben:h, Hyderabad, in I.T.A.No.15/Hlrd/2OO7 for the Assessment Year 2Ol)3 04. II I I 3. Central Boarcl rf Direct Taxes (CtsDT) has issut:d Circular No.9 of 2024 dated 17.O9.2(124, amending the previotis Cir<:rrlar No.5 of 2024 dated 15.03.2024, by further enhzrncing the monetiul. limits for filing appeals by the Income Tax Department before the Incorne Ta-x Appellate Tribunals, High Courts and Supreme Colrrl as a measure for reducing litigation In paragraph 2 of the said Circular, rve find that the monetary limit txed for filing an appeal before ii.re High Court is Rs.2.OO crore.

Page 2 of 3 4. In the instaut appeal, tax effect is well below the monetary limit. 5. Therefore, the appeal filed by the Revenue is dismissed in terms of the aforesairl Circular No.9 of 2024 dated 17.O9.2O24. However, if the appeal comes within the exception of Circular No.S of 2024, it would be open to the Income Tax Department to seek reviva,l of the appeal. No costs 6. As a sequel, miscellaneous applications pending if any, shall stand closed. Sd/. K. SRINIVASA RAO J NT REGISTRAR //TRUE COPY// S CTION OFFICER To, 1. The lncome Tax Appellate Tribunal Hyderabad Bench '8" Hyderabad- 2. The Commissioner of lncome Tax (Appeals)-V' Hyderabad' 3'trheAssistantCommissioneroflncomeTax,Circlel6(2),Hyderabad. a One'Cb to.tVI/s. J.V. Prasad (Senior Standing counsel for lncome Tax) IoPUCI 5. One CC to Sri K- Vasant Kumar, Advocate [OPUC] 6. Two CD CoPies kam/gh k^r,' L-

HIGH COURT DATED:1210212025 JUDGMENT ITTA.No.294 of 2011 DISMISSING OF: THE APPEAL z ,) !) I Jr,ir -' 26 fiAR 2[E * * o,FspATCH €_O

Recent GST High Court judgments

Search GST case law →