THE COMMISSIONER OF INCOME TAX-III vs. M/S.SOFTSOL INDIA LTD

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ITTA/332/2010HC TelanganaHBHC01040405201011 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 prescribed by CBDT Circular No. 9 of 2024 for filing appeals before the High Court. Consequently, the appeal filed by the Revenue was dismissed in terms of the aforesaid circular. The court also noted that if the appeal came within any exception of Circular No. 5 of 2024, it would be open to the Income Tax Department to seek revival of the appeal. No costs were awarded. The operative direction was the dismissal of the appeal.

What were the facts?

The Revenue, Commissioner of Income-Tax-III, Hyderabad, filed an appeal under Section 260-A of the Income Tax Act, 1961, before the High Court for the State of Telangana at Hyderabad. This appeal was against an order dated 15.02.2008 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'A', for Assessment Year 2003-04. The Tribunal's order was itself preferred against an order dated 15.06.2006 of the Commissioner of Income Tax (Appeals) IV, Hyderabad, which in turn was against an order dated 30.12.2005 of the Deputy Commissioner of Income Tax, Circle-3(2), Hyderabad. The assessee is M/s. Softsol India Ltd. The appeal was filed by the Revenue as the appellant.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the monetary limits prescribed by the CBDT for filing appeals before the High Court? The Revenue argued that the appeal was filed against the order of the Income Tax Appellate Tribunal. The judgment does not record any specific arguments from the Revenue regarding the merits of the case. The judgment notes that the Central Board of Direct Taxes (CBDT) issued Circular No. 9 of 2024, dated 17.09.2024, amending Circular No. 5 of 2024, dated 15.03.2024, to enhance monetary limits for filing appeals. The monetary limit for filing an appeal before the High Court was fixed at Rs. 2.00 crore. The judgment does not record any arguments from the assessee.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

13447 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD TUESDAY, THE ELEVENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEAL No: 332 of 2010 lncometaxTribunalAppealUnderSection260-AofthelncometaxAct,l96l, againsttheorderofthelncomeTaxAppellateTribunal,HyderabadBenchA, HyderabadinlTANo.TSTIHydl2oo6forAssessmentYear2003.04datedl5-02- 2008, preferred against the Order of the Commlssioner of lncome Tax (Appeals) lV' Hyderabaddatedl5.06-2006inAppealNo.413/DC.3(2)/clT(A)-lV/2005.06' preferredagainsttheorderoftheDeputyCommissioneroflncomeTax,Circle-3(2)' Hyderabad dated 30-12-2005 in PAN/GIR No AAACN7328P/ 5-023' Between: The Commissioner of lncome-Tax-lll, lT Towers, A C Guards' Masab Tank' Hyderabad. ...APPellant AND M/s.Softsol lndia Ltd, Plot No.4, lnfocity, Madhapur, Hyderabad ...Respondent Counsel for the Appellant: Ms. Bokaro Sapna Reddy, SC FOR lT Counsel for the Respondent: Sri Challa Nagendra Prasad The Court delivered the following: JUDGMENT i I

THE HON,BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NA.IIDIKONDA INCOME TAX TRIBUNAL APPEAL No.332 ()16'2010 Heard Ms.Bokaro Sapna Reddy' learned Standing Counsel for Incorne Tax, appea:-ing on behalf of the appellant' 2. The instant :rppeal under Section 26OA of the income Tax Act' 1961,hasbeenpr':ferredbytheRevenueastheapl'eilantagirirrstthe orderdatecll5.o2.2o0spassedbythelncomeTzrxAp,pellateTribunal, Hyderabad "A" Bench, Hyderabad' in I'T'A No 757 lILvdl20A6 1br the Assessment Year 21003-O4' 3. Central Board of Direct Taxes (CBDT) 6215 !55qr:rl Clrcular No 9 of 2024 dated, 17.Og 2024, amending the previou" Cir';r'riar No 5 of 2024 dated 15.03. 2024, by further enhancing the monetrl' lirnits for fiiing appeals by the Income Ta-x Department before the Income Tax Appellate Tribunals, High Courts and Supreme Court. as a measl'tre for reducing litigatiorr. In paragraph 2 of the said Cir:''r1ar' we find that the monetary limit fixed for filing an appeal befort the High Court is JUDGMENT: o)er Hon' )le Sri Jltstice P'Sam I(ostt, t I Rs.2.O0 crore. I I I I I I l I I I

fr Page 2 of 3 4. In the instant appeal, tax effect is well below the monetary limit. 5. Therefor.e, the appeal filed by the Revenue is dismissed in terms of the aforesaid Circular No.9 of 2024 dated, 12.Og.2O24. However, if the appeal come.s rvithin the exception of Circular No.5 of 2024, it would be open to the Income Tax Department to seek revival of the appeal. No costs 6. As a sequel, stand clo.sed. miscellaneous applications pending if any, shall //TRUE COPY// Sd/. K. SRINIVASA RAO JOINT REGISTRAR CTION OFFICER To, kam 1. The lncome Tax Appellate Tribunal, Hyderabad Bench A, Hyderabad 2. The Commissioner of lncome Tax (Appeals) lV, Hyderabad. 3. The Deputy Commissioner of lncome Tax, Circle-3(2), Hyderabad. 4. One CC to Ms. Bokaro Sapna Reddy, SC FOR lT [OPUC] 5. One CC to Sri Challa Nagendra Prasad, Advocate [OPUC] 6. Two CD Copies I

HIGH COURT DATED:1 110212025 JUDGMENT ITTA.No.332 ot 2010 DISMISSING OF THE APPEAL 17 APB 216 \ k uffi;,-i,1.',. I ,l ; {) ,:, {* I lc:clar, I l I I i I I I :

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