THE COMMISSIONER OF INCOME TAX -I, HYD. vs. A.P. STATE HOUSING CORP. LTD., HYD.

ITTA/308/2011HC TelanganaHBHC01008379201112 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 primary reason for dismissal was the tax effect in the instant appeal being well below the monetary limit of Rs. 2.00 crore for filing appeals before the High Court, as stipulated by CBDT Circular No. 9 of 2024 dated September 17, 2024 (which amended Circular No. 5 of 2024 dated March 15, 2024). The Court noted that this circular was issued as a measure for reducing litigation. The judgment also stated that if the appeal falls 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, Commissioner of Income Tax-I, Hyderabad, filed an appeal before the High Court of Telangana at Hyderabad against an order dated January 21, 2011, passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'A'. This ITAT order was in relation to ITA No. 376/Hyd/10 for the Assessment Year 2002-03. The appeal challenged the order of the Commissioner of Income Tax (Appeals)-II, Hyderabad, dated December 11, 2009, which in turn was against the assessment order dated November 28, 2008, passed by the Deputy Commissioner of Income Tax Circle-1(1), Hyderabad. The assessee is A.P. State Housing 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 before the High Court? (Question of law) Assessee's Contention: The judgment does not record any specific contentions from the assessee regarding the merits of the case. The appeal was dismissed based on the CBDT circular. Revenue's Contention: The Revenue, through its Standing Counsel, presented the appeal. The judgment indicates that the appeal was filed under Section 260A of the Income Tax Act, 1961. The Revenue's argument, if any, on the merits of the case is not recorded. The dismissal was based on the tax effect being below the monetary limit prescribed by the CBDT circular.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

13447l IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD WEDNESDAY, THE TWELFTH 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: 308 OF 2011 Appeal filed under Section 260(4) of the lncome-Tax Act, against the order daled. 21.O1.2011 passed in lTA.No.376 Hyd/10 for the Assessment years 2002-03 on the file of the lncome Tax Appellate Tribunal Hyderabad Bench 'A', Hyderabad preferred against the Order dated: 11.12.2009 passed in ITA No.0036 GIT(A)-ll/09- 10 on the file of the Commissioner of lncome Tax (Appeals)-ll, Hyderabad preferred against the Assessment Order dated: 28-11-2008 passed in PAN/GIR No. AABCA7206L A-110 on the file of the Deputy Commissioner of lncome Tax Circle - 1(1), Hyderabad. Between: The Commissioner of lncome Tax- I, Hyderabad .,,APPELLANT AND A.P. State Housing Corporation Ltd. 3-6-184, Himayatnagar, Hyderabad. ...RESPONDENT Gounsel for the Appellant : Ms. Bokaro Sapna Reddy Standing Counsel for lncome Tax. Counsel for the Respondent : Sri Challa Gunaranjan The Court made the following: ORDER

THE HON 'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRT JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEAL No.3O8 OF 2011 JUDGMENT: ber Hot 'ble Sri Justice p.Sam Koshs) Heard Ms.Bokaro Sapna Reddy, learned Standin5r Counsel for Income Tax, appearing on behalf of the appellant. 2. The instalt rrppeal under Section 26OA of tire lncome Tax Act, 1961, has been pr,:ferred by the Revenue as the api)cllar t against the order dated 2l .Ol.2Ol1 passed by the Income 'I'a-'r Appcllate Tribuna,l, Hyderabad'4" Bench, Hyderabad, in I.T.A.No.3T6lHtd12010 for the Assessment Year 2 lO2-03 3. Central Boarcl of Direct Taxes (CBDT) ha,s issued (]jrcr-rlar No.9 of 2024 dated 1.7.O911024, amending the previous Cin:uiai \o.5 of 2024 dated 15.03.2024, by further enhancing the moncran lir:rits for filing appeals by the hrcome Tax Department beforc thr: Income Tax Appellate Tribunals, High Courts and Supreme Court as a measure for reducing litigatr.on. In paragraph 2 of the said Circrrlil;-. r,,,,e find that the monetar5r limit fixed for frling an appeal before the High Court is Rs.2.OO crore. I t /4 I I

Page 2 of ! 4. In the instant appeal, tax effect is well below the monetar5r limit. 5. Therefore, the appeal filed by the Revenue is dismissed in terms of the aforesaid 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 revival of the appeal. No costs 6. As a sequel, miscellaneous applications pending if any, shall stand closed. sd/- A.v.s.s.c.s.M. NT REG //TRUE COPY// ECTION OFFICER The lncome Tax Appellate Tribunal Hyderabad Bench 'A', Hyderabad. The Commissioner of lncome Tax (Appeals)-ll, Hyderabad' The Deputy Commissioner of lncome Tax Circle - ('t), Hyderabad. One CC to Ms. Bokaro Sapna Reddy Standing. Counsel for lncome Tax [OPUC] One CC to Sri Challa Gunaranjan, Advocate [OPUC] Two CD Copies i"1 .- To, 1 4 5. 6. DL/gh l

! HIGH COURT DATED:1210212025 JUDGMENT |TTA.No.3O8 ol 2011 DISMISSING THE APPEAL R 1Ht: )co 0 3 APf 2U5 ( o.,' i-:: # i:-::-

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