The Commissioner of Income Tax-II, Hyderabad. vs. TNS India Pvt. Ltd.,

ITTA/41/2010HC TelanganaHBHC01026251201026 September 2023Bench: P.SAM KOSHY,LAXMI NARAYANA ALISHETTY4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The decision was based on the Central Board of Direct Taxes (CBDT) Circular No. 17 of 2019, which amended Circular No. 3 of 2018. This circular enhanced the monetary limits for filing appeals by the Income Tax Department before the High Courts. The Court noted that the tax effect in the instant appeal was well below the prescribed monetary limit of Rs. 1.00 crore for filing appeals before the High Court. Therefore, the appeal was dismissed in terms of the said circular. The Court also noted that if the appeal fell within any exception under paragraph 10 of Circular No. 3 of 2018, the Income Tax Department could seek revival of the appeal. No order as to costs was made.

What were the facts?

The Revenue, as the appellant, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 20.07.2007 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'B'. This order was for Assessment Year 2002-03. The appeal arose from a series of lower authority orders, including those from the Commissioner of Income Tax (Appeals)-III and the Assistant Commissioner of Income Tax, Circle -3(3), Hyderabad. The respondent is TNS India Pvt. Ltd. The appeal was filed against the backdrop of CBDT Circulars aimed at reducing litigation by enhancing monetary limits for filing appeals.

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 Circular No. 17 of 2019, amending Circular No. 3 of 2018. Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The Revenue, through its counsel, presented the appeal. The judgment implicitly acknowledges the appeal was filed by the Revenue. The primary basis for the decision appears to be the applicability of the CBDT Circulars regarding monetary limits for filing appeals. The judgment does not record specific arguments made by the Revenue regarding the merits of the case, but rather focuses on the procedural aspect of the appeal's maintainability based on the tax effect.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

[ 3386 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD TUESDAY, THE TWENTY SIXTH DAY OF SEPTEMBER TWO THOUSAND AND TWENry THREE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE A. LAXMT NARAYANA IN E TAX TRIBUNAL APPEAL No: 41 ol 201O lncome Tax Tribunal Appeal Under Section 260A of the lncome Tax Act, 1961 arising out of the order of the lncome Tax Appellate Tribunal, Hyderabad Bench'B', Hyderabad in rrA No.1179/Hyd/2005, Assessment year: 2002-03, dated 2o-o7-2o07 preferred against the order of the commissioner of rncome Tax (Appeals)-lll, Hyderabad, ITA No.01B3/ACtT-3(3yCtT (A)_ilt/05_06, dated:2649_ 2005 preferred against the order of the Assistant commissioner of lncome Tax, Circle -3(3), Hyderabad, PAN/G|R No. AABCN2278F/T_190, dated I5_03-2005. Between: The Commissioner of lnmme Tax{1, Hyderabad ...APPELLANT AND TNS lndia P!rt. Ltd., l,.lo. 17, Road No.3, Banjara Hills, Hyderabad ...RESPONDENT Counsel for the Appellant: SR! B. SAPNA REDDY, Junior Standing Counsel representing SRt J.V. PRASAD, Sr SC FOR tT DEPARTMENT Counsel for the Respondent: SRI A.V. RAGHU RAM The Court delivered the following: JUDGMENT

THE HON'BLE SRI JUSTICE P.SAM KOSTTY . AND THE HON'BLE SRI WSTICE A. LA:OUI NARAYANA I.T.T.A. No.41 of 2O1O JI'DGMENT A)er llon'ble Sn ,luslice P-SAM KOSIfi) Heard Ms. B. Sapna Reddy, learned Junior Standing Counsel representing Sri J. V. Prasad, learned Senior Standing Counsel for Income Tax Department appearing for the appellant. 2. This appeal under Section 260A of the Income Tax Act, 1961, has been preferred by the Revenue as the appellant against the order dt.2O.O7 .2OO7 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad, in LT.A.No.1 lT9lHyd/2OO5 for the Assessment Year 2002-03. 3. Central Board of Direct Taxes (CBDT) has issued Circular No.17 of 2019 dt.O8-08.20 19, amending the previous Circular No.3 of 2O18 dt.11.O7.2018, by further enha;rcing the monetary limits for frling appeals by the lncome Tax Depa-rtment belore the Income Tax Appellate Tribunals, High Courts and Supreme Court as a measure for reducing litigation. ln paragraph 2 of thc said Circular, we find that the monetarJ, Iimit firxed for filing an appeal belore the High Court is Rs. 1.O0 crore. 4. In the instant appeal, ta-x effect is well below the monetar5r limit. 5. Therefore, the appeal filed by the Department is dismissed in (erms of the aforesaid Circular No.l7 of 2019 dt.08.O8.2O19. However, if the appeal comes within the exception under paragraph 10 of Circular No.3 of 2018, it I I I i

2 would be open to the Income Tax Department to seek revival of the appeal No order as to costs. 6. Consequently, miscellarreous petitions pending, if any, shall stand closed Sd/- K. SRINIVASA RAO JOINT REGISTRAR /TTRUE COPY// SECTI6,II OFFICER To, kam pr 1 The lncome Tax Appellate Tribunal' Hyderabad Bench '8" Hyderabad' iffi Uiiii.t"(nll5rrn-_,,"G#m3ffi f ]-Jll"1y9.i!il"noro","o,o l, $:H li ihit vms^sw #{i#ssir'iYd;"*' 6. Two CD CoPies

HIGH COURT DATED:2610912023 JUDGMENT ITTA.No.41 of 2010 THE APPEAL IS DISMISSED 2E Bcr ?CI21 'i?, Io aa

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