The Commissioner of Income tax-V vs. Shri Sanjay Agarwal

ITTA/386/2010HC TelanganaHBHC01034212201004 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 not maintainable. This decision was based on Circular No.9 of 2024 dated 17.09.2024, which amended Circular No.5 of 2024 dated 15.03.2024, enhancing the monetary limits for filing appeals by the Income Tax Department. The circular specifies a monetary limit of Rs.2.00 crore for filing appeals before the High Court. The Court noted that the tax effect in the instant appeal was well below this prescribed monetary limit. Therefore, the appeal was dismissed in terms of the circular. The Court also stated that if the appeal fell within any exceptions mentioned in Circular No.5 of 2024, the Income Tax Department could seek revival of the appeal. No order as to costs was made. The operative direction was to dismiss the appeal.

What were the facts?

The Revenue, Commissioner of Income Tax-V, filed an appeal before the High Court of Telangana at Hyderabad against an order dated 31-07-2008 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'A'. The ITAT's order pertained to the block period 1997-98 to 2002-03, and it was preferred against an order of the Commissioner of Income Tax (Appeals) - Hyderabad, which in turn was against an order of the Deputy Commissioner of Income Tax, Central Circle - 3, Hyderabad. The assessee is Shri Sanjay Agarwal. The appeal was filed under Section 260A of the Income Tax Act, 1961.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court given the monetary limits prescribed by CBDT Circulars for filing appeals. (Question of law) The Revenue, through its counsel Ms. B Sapna Reddy, did not present arguments on the merits of the case. The Court's decision was based on the tax effect of the appeal in light of the CBDT Circulars. The Respondent, Shri Sanjay Agarwal, was represented by Sri K Vasantkumar, but no specific arguments from the respondent are recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

13447 1 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERIABAD TUESDAY, THE FOURTH 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: 386 OF 2010 lncome Tax Tribunal Appeal Under Section 260,4 of the lncome Tax Act,1961 against the Order dated 31-07-2008 passed in |T(SS)A.No.109/Hyd/2005 for the Block period 1997-98 to 2002-03 on the file of the lncome Tax Appellate Tribunal, Hyderabad Bench 'A', Hyderabad preferred against the Order dated 11-03-2005 passed in Appeal No.0162lCC-3,HydlCI (A)-1104-05 on the file of the Commissioner of lncome Tax (Appeals) - Hyderabad preferred against the Order dated 30-04-2004 passed in P.A.N. NO/G.l.R. No. ADDPA 6971G on the file of the Deputy Commissioner of lncome Tax, Central Circle - 3, Hyderabad. Between: The Commissioner of lncome tax-V, I.T.Towers, Masab Tank, Hyderabad. ...AppellanU AND Shri Sanjay Agarwal, 16, Juipter Colony, Kakaguda, Secunderabad. ...RespondenU Counsel for the Appellant : Ms. B Sapna Reddy, Junior standing Counsel representing Sri J V Prasa, Senior Standing Counsel for lncome-Tax Dept. Counsel for the Respondent: Sri K Vasantkumar The Court delivered the following: Judgment I I

*7 r THE TIONOURABLE SRI JUSTICE P.SAM KOSHY AND THf HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA .IIJD(;MI,]N T (per llon'ble Sri Justice P.Sam Koshy) Counsel representing Mr. J.V.Prasad, learned Senior Standing Counsel for the lnconre Tax Department for the appellant. Perused the recolcl- 2. This appeal under Section 260,{ of the Income Tax Act, 1961, has been preferred by the Revenue as the appellant against the order dated 31.07.2008 passed by the Income Tax Appellate I'ribunal. [lyderabad Bench 'A', I{yderabad, in IT (SS) A.No. I 09/l 11 di05 tbr the block period 1997 -98 to 2002-2003 up to 18.04.2002 3. Central Board of Direct Taxes (CBDT) has issued Circular No.9 ol 2024 dated 17.09.2024, amending the previous Circular No.5 of 2024 dated 15.03.2024, by further enhancing the monetary limits for filing appeals by the Income Tax Department before the I Income l-ax Appellate Tribunals, High Courts and Supreme Court ITTA No.386 OF 2010 Heard Ms. B.Sapna Reddy, learned Junior Standing

2 To, as a measure for reducing litigatioi. In paragraph 2 of the said Circular, we find that the monetary limit fixed for filing an appeal before the High Coun is Rs.2.00 crore. 4- ln 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 stand closed' sd/- A.v.s.s.c.s.M. 'ARMA OINT REGISTRAR //TRUE COPY// ECTION OFFICER 1. The lncome Tax Appellate Tribunal, Hyderabad Bench 'A', Hyderabad 2. The Commissioner of lncome Tax (Appeals) - Hyderabad 3. The Deputy Commissioner of lncome Tax, Central Circle - 3, Hyderabad. 4. One CC to Sri J V Prasad, Senior Standing Counsel for lncome-Tax Dept. toPUCl 5. One CC to Sri K Vasantkumar, Advocate [OPUC] 6. Two CD Copies ADK \ 0 \

HIGH COUR'I DATED:0410212025 JUDGMENT ITTA.No.386 of 2010 DISMISSING THE ITTA WITHOUT COSTS € 2 1 ri1Afr 2025 t IrAT r)tlr.O HE S rAa 1 , 06 ".- I -a. I I

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