COMMISSIONER OF INCOME TAX-III vs. M/S.SOFTSOL INDIA LIMITED

ITTA/450/2012HC TelanganaHBHC01060634201218 February 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The primary reason for dismissal was the monetary limit for filing appeals before the High Court, as stipulated by CBDT Circular No. 9 of 2024 dated 17.09.2024, which enhanced the limit to Rs. 2.00 crore. The Court noted that the tax effect in the instant appeal was well below this prescribed monetary limit. The Court also stated that if the appeal falls within any exception provided in 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.

What were the facts?

This case involves an appeal filed by the Revenue (Commissioner of Income Tax-III) against an order dated 30.12.2010 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'A'. The ITAT's order pertained to Assessment Year 2006-2007. The appeal was preferred against the order of the Commissioner of Income Tax (Appeals)-IV, Hyderabad, which in turn was against the Assessment Order passed by the Deputy Commissioner of Income Tax, Circle-3(2), Hyderabad. The assessee is M/s. Sofsol India Limited. The appeal is 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 the Central Board of Direct Taxes (CBDT) for filing appeals. Assessee's Contention: The judgment does not record any specific contention from the assessee regarding the merits of the case. The entire focus is on the procedural aspect related to the monetary limits. Revenue's Contention: The Revenue, as the appellant, has filed the appeal. The judgment implicitly acknowledges the appeal was filed by the Revenue. The Revenue's argument, if any, would have been to justify the appeal's maintainability or merits, but the judgment focuses on the CBDT circular.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

\ -r*- 134471 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 TRIBUNAL APPEAL NO: 450 OF 2012 Appeal filed under Section 260(A) of the lncome-Tax Act, against the order dated. 30-12-2010 passed in lTA.No.1224lHydl2010 (Assessment year 2006-2007) on the file of the lncome Tax Appellate Tribunal Hyderabad Bench 'A', Hyderabad preferred against the Order dated: 30-06-20 10 passed in Appeal No.358/DCIT Cir 9 3(2yClT(A)-lV/09-10 on the file of the Commissioner of lncome Tax (Appeals)-lV, Hyderabad preferred against the Assessment Order dated: 04-12-2009 passed in PAN/GIR No S-23/AAACN7328F on the file of the Deputy Commissioner of lncome Tax, Circle-3(2), Hyderabad. Between: Commissioner Of lncome Tax-lll, O/o.lT Towers, AC Guards, Hyderabad. ...APPELLANT AND M/s.SOFTSOL lndia Limited, Oio.Plot No.4, Software Units Layout, Cyberabad, Hyderabad. ...RESPONDENT Counsel for the Appellant: Ms. B. SAPNA REDDY, JUNIOR S.C. REP. FOR Mr. J.V. PRASAD, SENIOR S.C. FOR INCOME TAX DEPARTMENT Counsel for the Respondent: SRI VIKRAM POOSERLA The Gourt delivered the following: JUDGMENT *o{ t:: \

THE HONOURABLE SRIJUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKOI\DA ITTA No.450 OF 2012 JUDGMENT: (per llon'ble Sri Justice P.Sam Koshy) Heard Ms. B.Sapna Reddy, leamed Junior Standing Counsel reprcsenting Mr. J.V.Prasad, learned Senior Standing Counsel for the lncome 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 rrrder dated 30.12.2010 passed by thr: Income Tax Appellate Tribunal, Hyderabad Bench 'A', I.tyderabad, 1n I.T.A.No. l 22 4 l HY D l 20 l0 for the Assessment Y ear 2.006 -07 . 3. Central Board of Direct Taxes (CBDT) has issued Circular No.9 of 2021 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 Income Tax .App 1 I ellate Tribunals, High Courts and Supreme Court

2 as a measure for reducing litigation. In paragraph 2 of the said Circular, we find that the monetary limit fixed for filing an appeal before the High Court is Rs.2.00 crore. 4. tn the instant appeal, tax effect is well below the monetary Iimit. 5 Therefore, the appeal filed by the Department is dismissed in terms of the aforesaid Circular No.9 of 2O24 dated 17.09-2024. However, if the appeal comes within the exception of Circular No.5 of 2024, it would be open to the lncome Tax Department to seek revival ofthe appeal. There shall be no order as to costs. 6. Consequently, miscellaneous petitions pending, if any, shall Sd/. K. SRINIVASA RAO J NT REGISTRAR /TTRUE COPY// CTION OFFICER I To,L The lncome Tax Appellate Tribunal Hyderabad Bench ,A,, Hyderabad 2. The Commissioner of lncome Tax (Appeals)-lV, Hyderabad 3, The Deputy Commissioner of lncome Tax, Circle-3(2), Hyderabad. 4. One CC to Sri J.V. Prasad, Senior S. C. for lncome Tax Department [OPUC] 5. One CC to Sri Vikram Pooserla, Advocate [OpUCl 6. Two CD Copies Plp/gh F r - .!al^ ! stand closed. /

HIGH COURT DATED:1 810212025 JUDGMENT ITTA.No.450 ot 2012 DISMISSING THE APPEAL ii: :t l.s ;)' -'-'^ -(-'.\\ '. --] G-';r !i u7 5n5( l),.J I A irt) \' ,). \.*\' gtu

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