The Commissioner of Income Tax VI vs. M/s.Kanaka Durga Wines

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ITTA/335/2012HC TelanganaHBHC01058210201217 February 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue was dismissed in terms of CBDT Circular No. 9 of 2024. The Court noted that the tax effect in the instant appeal was well below the monetary limit prescribed by the circular. The circular, dated 17.09.2024, amended previous circulars to enhance monetary limits for filing appeals by the Income Tax Department before the ITAT, High Courts, and Supreme Court, with the aim of reducing litigation. The monetary limit for filing an appeal before the High Court was fixed at Rs. 2.00 crore. The Court stated that if the appeal falls within any exception of Circular No. 9 of 2024, the Income Tax Department could seek revival of the appeal. No costs were awarded.

What were the facts?

The Revenue, Commissioner of Income Tax VI, Hyderabad, filed an appeal before the High Court against an order dated 16-12-2011 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. The ITAT's order pertained to Assessment Year 2006-2007 and was preferred against an order dated 28-02-2011 passed by the Commissioner of Income Tax (Appeals), Vijayawada. The original order was passed by the Income Tax Officer, Ward -9(3), Hyderabad. The appeal was filed under Section 260A of the Income Tax Act, 1961. The respondent is M/s. Kanaka Durga Wines.

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 prescribed by the Central Board of Direct Taxes (CBDT) Circular No. 9 of 2024. The Revenue argued that the appeal was filed under Section 260A of the Income Tax Act, 1961. The Revenue relied on CBDT Circular No. 9 of 2024, which sets a monetary limit of Rs. 2.00 crore for filing appeals before the High Court. The judgment does not record any specific arguments from the respondent.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

13447 ) IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD MONDAY, THE SEVENTEENIH 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: 335OF 2012 lncome Tax Tribunal Appeal Under Section 2604 of the lncome Tax Act,1961 against the order dated 16-12-2011 passed in ITA No. 815lHydl2011 for the Assessment Year 2006-2007 on the file of the lncome Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad preferred against the Order dated 28-02-2011 passed in Appeal No.222lClT(A)/Tr.A/JA/10-1 1 on the file of the commissioner of lncome Tax (ApBeals), vijayawada preferred against the order dated 31-12-2009 passed in PAN.No.AAHFK4STBJ on the file of the lncome Tax Officer, ward -9(3) Hyderabad. Between: The Commissioner of lncome Tax Vl, Hyderabad ...Appellant AND M/s.Kanaka Durga Wines, No. 2-42t8 and 9, Sai Nagar, Chaitanyapuri, Hyderabad. ...Respondent Counsel for the Appellant : Ms. Bokaro Sapna Reddy, Sc f6r lncome Tax Counsel for the Respondent : - - - The Court delivered the following: Judgment

THE HON'BLE SRI JUSTICE P.SAIvI KOSHY AND TI{E HON'BLE SRI JUSTICE NARSING RAO NANDII{ONDA INCOME TAX TRIBUNAL APPEAL No.335 oF:2O12 JUDGMENT: g,er u )t 'bte sn rustlct: p.sam Koshs) Heard Ms Bokaro Sapna Reddy, learned Stairdinls ( lounsel for Income Tax, apprearing on behaif of the appellant 2. The instarL[ ]1ppea1 under Section 260l\ of the lncorrc Tax Act, 1961, has been preferred by the Revenue as the appellali -rgaiinst the order dated 16.1i'.2O11 passed by the Income Tax {poeli:,rr: 'llribunal, Hyderabad "B" B,:nch, Hyderabad, in I.T.A.No.i;1:j/H1...1,'r{li 1 lor the Assessment Yea' 2O06-2007. 3. Central Boarl of Direct Taxes (CBDT) has ir,rsu,:C Circr ler lrl.:.r; ci 2024 dated 17 .A9.2,024, amending the previou-s ilirr:r rirr' :.tt , :., i.,i '/)_t)2tl dated 15.O3.2O24, by further enhancing the mcrncL,rn' li;r.,.s lor liiing appeals by ttre Income Tax Department bc-lirrr: r-he :, i:r:;r;. T':tx Appellate Tribunat:;, High Courts and Supremr: (l.oll.t i:s ir l-_.{t:rs,.tic for reducing litigation. In paragraph 2 of tlne said Ciirrular. \r"/.r ilnd that the monetary lirnit fixed for frling an appeal ltt-forr: tlr {jri n Court is Rs.2.O0 crore. I I

Page 2 of 3 + In the instant appcal, tax effect is well below the monetary limit' 5. Therefore, the appeal hled by the Revenue is dismissed in terms of the aforesaid circular No.9 of 2o24 dated, 17.o9.2o24. However, if the appeal comes u'ilhin the exception of Circular No'S of 2024 ' it would Lrc opcn to 1.hr: Itrcome Tax Department to seek revival of the appeal. No costs. 6. As a sequel, rr,iscellaneous applications pending if any' shall stand clo ser i //TRUE COPY// Sd/- M. VIJAYA BHASKER JOINT REGISTRAR ECTION OFFICER To ADI(PR 1 2 J 4 5 The lncome Tax Appellate Tribunal, Hyderabad Bench.'8" Hyderabad The Commissionei of lncome Tax (Appeals), vijayawada The lncome Tax Officer, Ward -9(3) Hyderabad OnL CC to Ms. Bokaro Sapna Reddy, Sc for lncome Tax' [OPUC] Two CD CoPies

HIGH COURT DATED:17102t2025 JUDGMENT ITTA.No.335 ot 2012 DISMISSING THE ITTA WITHOUT COSTS o* 574 /4. 1t r.rn ?es a iJ ( ) ', rl:

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