Commissioner of Income Tax -III vs. Y. Shivalinga Prasad

ITTA/428/2012HC TelanganaHBHC01042425201218 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. The Court referred to CBDT Circular No. 9 of 2024, which amended Circular No. 5 of 2024, by enhancing the monetary limits for filing appeals by the Income Tax Department. The circular specified that the monetary limit for filing an appeal before the High Court is Rs. 2.00 crore. In the present case, the tax effect was found to be well below this prescribed monetary limit. Consequently, the appeal filed by the Department was dismissed based on this circular. The Court also noted that if the appeal fell within any exception provided in Circular No. 5 of 2024, the Income Tax Department could seek revival of the appeal. No order as to costs was made.

What were the facts?

The Revenue, Commissioner of Income Tax - III, Hyderabad, filed an appeal under Section 260A of the Income Tax Act, 1961, before the High Court of Telangana at Hyderabad. The appeal challenged an order dated 26.06.2009 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B', for the Assessment Year 2005-06. This ITAT order was itself preferred against an order dated 14.03.2008 passed by the Commissioner of Income Tax (Appeals) - I, Hyderabad, which in turn was against an order dated 28.11.2006 passed by the Assistant Commissioner of Income Tax, Central Circle - 7, Hyderabad. The assessee is Y. Shivalinga Prasad. The appeal was filed by the Revenue against the ITAT order.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, considering 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 provisions of Section 260A of the Income Tax Act, 1961. The Revenue relied on the fact that an appeal was preferred against the ITAT order. The judgment does not record specific arguments from the Revenue regarding the maintainability based on monetary limits, but the appeal itself was filed by the Revenue. The judgment mentions CBDT Circular No. 9 of 2024 dated 11.09.2024, which enhanced the monetary limits for filing appeals, setting the limit for High Court appeals at Rs. 2.00 crore. The judgment notes that the tax effect in the instant appeal was well below this limit.

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 HYDERABAD TUESDAY, THE EIGHTEENTH 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 TRIBUNA L APPEAL NO: 428 OF 2012 lncome Tax Tribunal Appeal Under Section 260A of the lncome Tax Act,196'1 against the Order dated 26-06-2009 passed in ITA No,961/Hyd/2008 for the Assessment Year 2005-2006 on the file of the lncome Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad preferred against the Order dated '1 4-03-2008 passed in ITA No.0566 to O571tCC'7, HYD/ClT(4)-1106-07 on the file of the commissioner of lncome Tax (Appeals) - I , Hyderabad preferred against the order dated 28-11-2006 passed in GIR/PAN No.AAIPY 5604 N I 5-722 on the ftle of the Assistant Commissioner of lncome Tax, central Circle - 7, Hiderabad. Between: Commissioner of lncome Tax -lll, lT Towers, AC Guards, Masab Tank, Hyderabad. ...Appella nt AND Y. Shivalinga Prasad, Plot No. 101, MLA MP Colony, Road No. '10C' Jubilee Hills. Hyderabad. ... Respondent Counsel for the Appellant : Ms. Bokaro Sapna Reddy representing Sri J V Prasad, Sc for lncome Tax Counsel for the Respondent : Sri B Krishna Reddy The Court delivered the following: Judgment

.u_t=E.F: \ THE HONOURABLE SRI JUSTICE P.SAM KOSHY ANI) THE HONOTIRABLE SRI JUSTICE NARSING RAO NANDIKONDA ITTA No.428 OF 2012 JUDGMENT /per Hon'ble Sri.lustice P.Sam Koshy) Heard Vs. B.Sapna Reddy, leamed Junior Standing Counsel repre:;enting Mr. J.V.Prasad, learned Senkrr Standing Counsel for thc Income Tax Department for the appellant. Perused the lecord 2. This appeai under Section 260A of the Incc,me Tax Act, 1961, has ber:n preferred by the Revenue as :he appellant against the orrler dated 26.06.2009 passed by the [ncome Tax Appellate l-ribunal, Hyderabad Bench 'B', H.rderabad, ln I.T.A.No.96 l/liYD/2008 for the Assessment Year 2005-06. 3. Central floard of Direct Taxes (CBDT) has issued Circular No.9 of 2024 dated 11 .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 Incorne Tax Appellate Tribunals, High Courts and Strpreme Court .$

2 To, ADt(PSL w 1 2. 4 6 o as a measure for reducing litigation' In paragraph 2 of the said Circular, we find that the monetary limit fixed for frling 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, \t 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,-M.vuAYAEs,t?ffifi /,TRUE COPY// ECTION OFFICER Two CD CoPies +[ 8:ffi:Jil:rui i'f:: J: itr l^[ffi3f I ].f, l#;i'l * *1",,. iillX'Jr.il"ic?Tli"1","'{":Lrli""J;li:,::8[Ui' One CC to Sri J V Prasad' t one CC to Sri B Krishna ""ddy' Ad'o""te [OPUC]

HIGH COURT DATED:1810212025 JUDGMENT ITTA.No.428 of 2012 DISMISSING THE ITTA WITHOUT COSTS e lrr THE s 14 -{rae rcHzo + 46 17 APt. M f' t .Ct ag('A ktt I

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