The Commissioner of Income Tax-III vs. M/s.Shakti Seeds [P] Ltd

ITTA/297/2010HC TelanganaHBHC01038538201010 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 CBDT Circular No. 9 of 2024, dated 17.09.2024, which amended Circular No. 5 of 2024, dated 15.03.2024. These circulars enhance the monetary limits for filing appeals by the Income Tax Department to reduce litigation. The circular specifies that the monetary limit for filing an appeal before the High Court is Rs. 2.00 crore. The judgment notes that the tax effect in the instant appeal was well below this monetary limit. The court stated that if the appeal falls within any exception of Circular No. 5 of 2024, the Income Tax Department is at liberty to seek revival of the appeal. No order as to costs was made.

What were the facts?

The Revenue, represented by the Commissioner of Income Tax-III, Hyderabad, filed an appeal before the High Court of Telangana at Hyderabad against an order dated 16.01.2008 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'A'. This ITAT order pertained to Assessment Year 2001-02 and was preferred against an order dated 24.09.2004 by the Commissioner of Income Tax (Appeals) IV, Hyderabad, which in turn was against an assessment order dated 31.03.2004 passed by the Income Tax Department. The assessee is M/s. Shakti Seeds [P] Ltd. The appeal was filed under Section 260A of the Income Tax Act, 1961.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court given the tax effect and the prevailing monetary limits for filing appeals as stipulated by the Central Board of Direct Taxes (CBDT) circulars? (Question of law) Assessee's Contention: Not explicitly recorded as the appeal was dismissed on preliminary grounds. The judgment implies the assessee would have benefited from the circular if the appeal was not maintainable. Revenue's Contention: Not explicitly recorded as the appeal was dismissed on preliminary grounds. The Revenue filed the appeal, presumably believing it was maintainable.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

(-.:.', 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: 297 OF 2010 Appeal filed under Section 260(4) of the lncome-Tax Act, against the order dated. '16-01-2008 passed in ITA.No. 11961Hyd12004 (Assessment year 2001-02) on the file of the lncome Tax Appellate Tribunal Hyderabad Bench 'A', Hyderabad preferred against the Order dated: 24-09-2004 passed in Appeal No.'144lAC- 3(1yClT(A)-lV/04-05) on the file of the Commissioner of lncome Tax (Appeals)lV, Hyderabad preferred against the Assessment Order dated. 31-03-2004 passed in PAN/GIR No. AACCS8206I(SH-15 on the file of the lncome Tax Department. Between: The Commissioner of Income Tax-lll, lT Towers, AC Guards, Masab Tank, Hyderabad ...APPELLANT AND Ir//s.Shakti Seeds [P] Ltd, H.No.3-6-439/4, Himayathnagar, Hyderabad -29 ...RESPONDENT Counsel for the Appellant: SRI B. NARASIMHA SHARMA Counsel for the Respondents: Ms. B. SAPNA REDDY, JUNIOR S.C. REP. FOR Mr. J.V.PRASAD, SENIOR S.C. FOR INCOME TAX DEPARTMENT The Court made the following: JUDGMENT I I I I I I

f' .l THE HONOURABLE SRTJUSTICE P.SAM KOSHY AND THE HONOURABLE SRIJUSTICE NARSING RAO NANDIKONDA ITTA No.297 OF 2010 JUD(lMEn-'I' lper Hon'ble Sri Justice P.Sam Koshy) Heard Ms. B.Sapna Reddy, leamed Junior Standing Counsel represe-nting Mr. J.V.Prasad, leamed Senior Standing Counsel fbr the lncome Tax Department lor the appellant. Perused the record. 2. This appeal under Section 2604. of the Income Tax Act, 1961, has been preferred by the Revenue as the appellant against the order dated 16.01.2008 passed by the Income Tax Appellate l'ribunal, Hyderabad Bench 'A', I{yderabad, Ill I.T.A.No. I 19t6lllydl2004 for the Assessment Year 2001-02. 3. Central Board of Direct Taxes (CBDT) has issued Circular No.9 of 202"1 dated 17.09.2024, amending the previous Circular No.5 of 2024 dated 15.03.2024, by further enhancing the monetary limits lor filing appeals by the Income Tax Department before the I I I I Income Tax ,{ppellate Tribunals, High Courts and Supreme Court

2 (.! as a measure for reducing iitigation. In paragraph 2 of the said Circular, we find that the monetary limit fixed for filing an appeal befbre the l{igh Court is Rs.2.00 crore 4. In the instant appeal, tax effect is well below the monetary lirnit. 5. l-herefore, the appeal filed by the Department is dismissed in tcrms of the aforesaid Circular No.9 of 2024 dated 17.09.2024. However, il the appeal comes within the exception of Circular No.5 crf 2024. il would be open to the Income Tax Department to seek revival ofthe appeal. There shall be no order as to costs. (r. Consequently, miscellaneous petitions pending, il any, shall stand closed. //TRUE COPY// Sd/. K. SRINIVASA RAO JOINT REGISTRAR ECTION OFFICER To, 1. The lncome Tax Appellate Tribunal Hyderabad Bench 'A', Hyderabad 2. The Commissioner of lncome Tax (Appeals)lV, Hyderabad 3. One CC to Sri J- V. Prasad, Senior Standing Counsel for lncome Tax Department [OPUC] 4. One CC to Sri B. Narasimha Sarma, Advocate [OPUC] 5. Two CD Copies Plp/gh \ \

HIGH COURT DATED:1010212025 JUDGMENT ITTA.No.297 of 2010 DISMISSING 'THE APPEAL ttia '-j ?7 iAff * I I @

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