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

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ITTA/304/2015HC TelanganaHBHC01048423201528 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 stipulated by CBDT Circular No. 9 of 2024 for filing appeals before the High Court. Consequently, the appeal filed by the Revenue was dismissed on this ground. The Court clarified that if the appeal fell within any exceptions 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 judgment did not decide the merits of the original appeal against the ITAT's order.

What were the facts?

The Revenue, represented by the Commissioner of Income Tax (Central), Hyderabad, filed an appeal before the High Court of Telangana at Hyderabad. This appeal was against an order dated December 19, 2013, passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad 'A' Bench, in ITA No. 742/Hyd/2010. The appeal pertained to the Assessment Year 2005-06. The High Court noted that the Central Board of Direct Taxes (CBDT) had issued Circular No. 9 of 2024, dated August 17, 2024, which amended Circular No. 5 of 2024, dated March 15, 2024. This amendment enhanced the monetary limits for filing appeals by the Income Tax Department before appellate authorities to reduce litigation. The circular specified a monetary limit of Rs. 2.00 crore for filing appeals before the High Court.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court given the monetary limits prescribed by the CBDT for filing appeals. This issue turns on the interpretation and application of CBDT Circular No. 9 of 2024 and Circular No. 5 of 2024. Contentions: Assessee: The judgment does not record any specific contentions made by the respondent assessee, Sri M.P.B. Kutumba Rao. Revenue: The Revenue, as the appellant, presented the appeal. The judgment does not explicitly record the Revenue's arguments regarding the merits of the ITAT's order. However, the appeal was filed under Section 260A of the Income Tax Act, 1961, indicating a challenge to the ITAT's decision. The primary focus of the High Court's decision was on the applicability of the monetary limits set by the CBDT.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

134471 IN THE HIGI-I COURT FOR THE STATE OF TELANGANA AT HYDERABAD FRIDAY, THE TWENTY EIGHTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUST1CE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEAL No: 304 of 2015 Appeal under section 2604 of the lncome Tax Act, 196'1 against the orders daled 19-12-2013 in l.TA.No.742lHydl2o10 for the Assessment Year 2005-06 passed by the lncome Tax Appellate Tribunal, Hyderabad "A" Bench, Hyderabad. Betwe en: ...Appetlant AND Sri M.P.B. Hyderabad Kutumba Rao, B-2-293182iJ-lll, Plot No.244 Road No.78, Jubilee Hills, ... Respondent Counsel for the Appellant: Ms. Bokaro Sapna Reddy (SC FOR INCOME TAX) Counsel for the Respondent: Mr. A.V.A. Siva Kartikeya The Court delivered the following: JUDGMENT The Commissioner of lncome Tax (Central), Hyderabad.

THE HON'BLE SRI JUSTICE P.SAM KOS!{Y AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL No.304 oF 2015 JUDGMENT: ber Hon bt': s'i rusttce P Sam Koshu) Heard Ms.Bokaro Sapna Reddy' learned Standing Counsel for Income Tax, appearing on behalf of the appeliant' 2- The instant appeal under Section 260A of the Income Tax Act' 1961, has been pret-erred by the Revenue as the appellant against the order dated lg.l2 '2013 passed by the Income Tax Appellate Tribunal' Hyderabad .4,, Bench, Hyderabad, in I.T.A.No.742 /Hydl2o1ro lor the Assessment Year 2005-06' 3. Central Board of Direct Taxes (CBDT) has issued Circular No'9 of 2024 dated 17.og.2024, amending thc previo,.is Cir.cular No.S of 2o24 dated 15.03.2 o24, t:y further enhancing the rrronetarl limits for illiag appeals by the Income Tax Department before the Income Tax Appellate Tribunals, High Courts and Supreme Court as a measure for reducing litigation' In paragraph 2 of the saicl Circular' we find that the monetary limit hxed for frling an appeal before the High Court is Rs.2.00 crore. I I I

Page 2 of 3 4, In the instant appeal, tax effect is well below the monetary limit. 5. Therefore, the appeal filed by the Revenue is dismissed in terms of the aforesaid Circular No.9 of 2024 daLed 17.Og.2024. 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 revival of the appeal. No costs. 6. As a sequei, miscellaneous applications pending if any, shall stand closed. //TRUE COPY' To, kam/['SI. '1 . The lncome Tax Appellate Tribunal, Hyderabad "A" Bench Hyderabad 2 One CC to Ms. Boiaro Sapna Reddy (SC FOR INCOME TAX) IOPUC] 3. One CC to Mr. A.V,A. Siva Kartikeya, Advocate IOPUCI 4. Two CD CoPies I SD/- K.SRINIVASA RAO .JOINT REGISTRAR N]'-___ \ V sEcrtoN oFFlcER I

HIGH COURT DATED:2810U2A25 JUDGMENT ITTA.No.304 of 2015 DISMISSING OF THE APPEAI- 3 19 APR * t) a' t I S E 4 $ 1 rE9- A1 F c t) '9 C) 2025 / L -\ I I

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