Commissioner of Income Tax, III, vs. Sri P.V. Ramana Reddy,

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ITTA/411/2012HC TelanganaHBHC01051548201230 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 dated 17.09.2024, which enhanced the monetary limits for filing appeals before the High Court to Rs. 2.00 crore. The Court noted that the tax effect in the instant appeal was well below this monetary limit. However, the Court also provided a rider: if the appeal came within the exceptions 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 to dismiss the appeal.

What were the facts?

The Revenue, Commissioner of Income Tax-III, Hyderabad, filed an appeal before the High Court of Telangana at Hyderabad against an order dated 06-01-2012 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. This order was in relation to ITA No. 1852/HYD/2011 for the Assessment Year 1999-2000. The ITAT's order was itself an appeal against an order dated 22-9-2011 passed by the Commissioner of Income Tax (Appeals) - IV, Hyderabad, which in turn was against an order dated 28-12-2006 passed by the Assistant Commissioner of Income Tax, Central Circle - 5, Hyderabad. The assessee is Sri P.V. Ramana Reddy.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the monetary limits prescribed by the Central Board of Direct Taxes (CBDT) for filing appeals. The Revenue contended that the appeal was filed in accordance with the law. The Respondent (assessee) did not record any specific arguments in the judgment. The Tribunal had to decide if the appeal should be dismissed due to the tax effect being below the prescribed monetary limit for appeals to the High Court, as per CBDT Circular No. 9 of 2024 (amending Circular No. 5 of 2024).

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

t3447 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD 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 APPEAL NO: 411 OF 2012 lncome Tax Tribunal Appeal Under Section 2604 of the lncome Tax Act,1961 against the Order dated 06-01-2012 passed in ITA No. '1852/HYD/20'1 1 for the Assessment Year 1999-2000 on the file of the lncome Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad preferred against the Order dated 22-9-2011 passed in Appeal No. 14llTO 6(3)/ClT(A)-lV/2O10-1 1 on the file of the Commissioner of lncome Tax (Appeals) - lV, Hyderabad preferred against the Order dated 28-12-2006 passed in P.A.N. NO/G.l.R. No: ADFPP2181F on the file of the Assistant Commrssioner of lncome Tax, Central Circle - 5, Hyderabad. Between: Commissioner of lncome Tax-lll, lT Towers, A.C. Guards, Hyderabad. ...APPellant AND Sri P.V. Ramana Reddy, Plot No- 28, Vivekananda Enclave, Road No. 2, Banjara Hills, Hyderabad. ...Respondent Counsel for the Appellant : Sri J V Prasad, Senior Standing Counsel for lncome-Tax Dept. Counsel for the Respondent : Sri B Krishna Reddy The Court delivered the following: Judgment

THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEAL No.411 OF 2OL2 JUDGMENT: A)er Hon'ble S.i Justice PSam Koshg) Heard Mr. J.V. Prasad, learned Senior Standing Counsel for Income Tax, appearing on behalf of the appellant. 2. The instant appeal under Section 260A of the Income Tax Act, 1961, has been prelerred by the Revenue as the appellant against the \ order dated 06.0l.2012 passed by the Income Tax Appellate Tribunal, Hyderabad "8" Bench, Hyderabad, in I.T.A.No.1B52/Hyd/11 for the Assessment Year 1999-2000. 3. Central Board of Direct Taxes (CBDT) has issued Circular No.9 of 2024 dated 17.O9.2024, amending the previous Circular No.5 of 2024 dated 15.03.2024, by further enhancing the monetary limits for filing appeals by the lrrcome Tax Department before the Income Tax Appellate Tribunals, High Courts and Supreme Court as a measure for reducing litigation. In paragraph 2 of the said circular, we lind that the monetary limit fixed for filing an appeal before the High court is Rs.2.0O crore.

Page 2 of 3 4. In the instant appeal, tax effect is well below the monetary limit. 5. Therefore, the appeal filed by the Revenue is dismissed in terms of the aforesaid Circular No.9 of 2024 dated 17.O9.2O24. 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 of the appeal. No costs. 6. As a sequel, miscellaneous applications pending if any, shall stand closed. Sd/- A.V.S.S.C.S.M. SARMA J rrur nrctsrRaR I/TRUE COPY// S CTION OFFICER To, ADK Yx 1 The lncome Tax Appellate Tribunal' Hyderabad Bench 'B' Hyderabad i iii " U" ru:, :;"j :l l;""T:*1",* !f:l . J;,i"lt iiiil 5, Tyd e:1b-td i H? t3 ii"S:, :",1;1:'#. "d* i", "s""i,s co u nse I ror I ncome-rax Dept toPUCl s. b""""c'i to sri B Krishna Reddy' Advocate [oPuc] 6. Two CD CoPies d ':a l-z \

HIGH COURT DATED:30101t2025 JUDGMENT ITTA.No.411 of 2012 DISMISSING THE ITTA WITHOUT COSTS a4d ( z u 9. J 21 r4Ati 2025 I t .srrrr ctl \+ et{"' I

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