Principal Commissioner of Income Tax-1 vs. M/s Sri Sri Gruha Nirman India Pvt Ltd

ITTA/34/2024HC TelanganaHBHC01036606202330 January 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 of Rs. 2.00 crore fixed for filing appeals before the High Court. The Court also stated that if the appeal falls within the exceptions of Circular No. 5 of 2024, the Income Tax Department would be at liberty to seek revival of the appeal. No order as to costs was made. Consequently, any pending miscellaneous petitions were also closed. The judgment did not decide the substantive issues of the assessment.

What were the facts?

The Revenue, Principal Commissioner of Income Tax-1, Hyderabad, filed an appeal under Section 260A of the Income Tax Act, 1961, before the High Court of Telangana at Hyderabad. The appeal was against an order dated 28.02.2023 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'A', for the Assessment Year 2016-17. The ITAT's order was itself an appeal against the order of the Commissioner of Income Tax (Appeals)-12, Hyderabad, which in turn was against the assessment order passed by the Deputy Commissioner of Income Tax, Central Circle-2(3), Hyderabad. The respondent in the appeal is M/s Sri Sri Gruha Nirman India Pvt Ltd.

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 as stipulated by CBDT Circulars. The Revenue, through its Senior Standing Counsel, appeared before the High Court. The Respondent was represented by Dundu Manmohan. The Court considered the appeal in light of CBDT Circular No. 9 of 2024, dated 17.09.2024, which amended Circular No. 5 of 2024, dated 15.03.2024, by enhancing monetary limits for filing appeals to reduce litigation. The circular specifies a monetary limit of Rs. 2.00 crore for filing appeals before the High Court. The Revenue did not present any arguments on the merits of the case, relying on the circular for dismissal.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

| 3447 l IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDER,ABAD THURSDAY, THE THIRTIETH DAY OF JANUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEA L NO: 34 OF 2024 Appeal filed under section 260(4) of the rncome-Tax Act., 1961, against the order dated. 28.02.2023 passed in rrA.No 532/Hy dt2o2o for the assessment year 2016-2017 on the fire of the court of the rncome Tax Appeflate Tribunar Hyderabad Benchs 'A" Hyderabad preferred against the order dated: 2g og.2o2o passed in Appeal.No. 1013612019-20 on the fire of the court of the commissioner of rncome Tax (Appeals) -12, Hyderabad preferred against the Assessment order dated: 28.06.2019 passed in pAN No. AALCS272'rG on the fire of the court of the Deputy Commissioner of lncome Tax, Central Circle-2(3), Hyderabad. Between: Principal Commissioner of lncome Tax--l, Hyderabad AND ..APPELLANT M/s sri sri Gruha Nirman rndia pvt Ltd, sri sri House, H.No.16 -2-733rAr2, R B Colony, Dilshuknagar, Hyderabad ...RESPONDENT Counsel for the Appellant: Sri J. V. prasad (Sr. SC FOR TNCOME TAX) Counsel for the Respondent: Dundu Manmohan The Court delivered the following JUDGMENT: I I I I I I

v // I I ( ( JUDGMENT: (per Hon'hle Sri Justice p.Sam Koshy) Heard Mr. J.V.prasad, leamed Senior Standing Counsel for the [ncome Tax Department for the appellant. perused the record. 2. This appeal under Section 260A of the Income Tax Act, 1961, has been preferred by the Revenue as the appellant against the order dated 28.02.2023 passed by the Income Tax Appellate Tribunal, Hyderabad Bench .A', Hyderabad, in I.T.A.No.532lHyd/2020 for the Assessment year 2016_17. 3. Central Board of Direct Taxes (CBDT) has issued Circular No.9 of 2024 dated 17.09.2024, amending the previous Circular No.5 of 2024 dated 15.03.2024,by futher enhancing rhe monerary limits fbr filing appeals by the Income Tax Department before the lncome Tax Appellate Tribunals, High Courts and Supreme Court as a measure lor reducing litigation. In paragraph 2 of the said I I .I'HE HONOURABLE SRI JUSTICE P.SAM KOSHY ANI) THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA ITTA No.34 OF 2024

2 stand closed. //TRUE COPY' Sd/. M. VIJAYA BHASKER JOINT REGISTRAR SECTION OFFICER To, 1. The lncome Tax Appellate Tribunal Hyderabad, Benchs 'A', Hyderabad 2. The Commissionei bf lncome Tax (Appeals)-12, Hyderabad 5. iil; Diliy Commijsioner of lncorird tax, central'Circle--2(3),Hvderabad' + On" Ci to'Sri J. V. Prasad (Sr SC FOR INCOIME TAX) [OPUC] S. One CC to Sri Dundu Manmohan, Advocate IOPUCI 6. Two CD Copies VFtigh o Circular, we find that the monetary limit fixed for filing an appeal before the High Court is Rs.2.00 crore. 4. In the instant appeal, tax effect is well below the monetary limit. 5. Therefore, the appeal filed by the Department is dismissed in terms of the aforesaid Circular No.9 of 2024 dated 17'09'2024' However, if the appeal comes within the exception of Circular No.5 of 2024, it would be open to the Income Tax Department to seek revival ofthe appeal. There shall be no order as to costs' 6. Consequently, miscellaneous petitions pending, if any, shall \ I \

HIGH COURT DATED: 3010112025 JUDGMENT lTTA.No.34 ot 2024 DISMISSING THE ITTA L lt)1:l Dt t S I : ,o 1 B E S'T,.\ riil i$ ,\ E )

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