COMMISSIONER OF INCOME TAX-III vs. M/S.SHRILEKHA HIRE PURCHASE FINANCE LIMITED

ITTA/451/2012HC TelanganaHBHC01041841201217 February 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court noted that the Central Board of Direct Taxes (CBDT) had issued Circular No. 9 of 2024, dated September 17, 2024, which amended Circular No. 7 of 2024, dated March 15, 2024. These circulars were issued to reduce litigation by enhancing the monetary limits for filing appeals by the Income Tax Department. Specifically, paragraph 2 of Circular No. 9 of 2024 states that the monetary limit for filing an appeal before the High Court is Rs. 2.00 crore. The Court observed that the tax effect in the present appeal was well below this monetary limit. Consequently, the appeal filed by the Revenue was dismissed in terms of Circular No. 9 of 2024. The Court also stated that if the appeal falls within any exception provided in Circular No. 8 of 2024, the Income Tax Department would be at liberty to seek revival of the appeal. No costs were awarded.

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. This appeal was against an order dated March 3, 2010, passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. The ITAT's order pertained to Assessment Year 2001-2002 and was itself an appeal against the order of the Commissioner of Income Tax (Appeals) IV, Hyderabad, dated July 13, 2004. The CIT(A)'s order was in appeal against the order of the Assistant Commissioner of Income Tax, 3(1), Hyderabad, dated March 15, 2004. The assessee is M/s. Shrilekha Hire Purchase Finance Limited.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, considering the monetary limits for filing appeals as stipulated by the Central Board of Direct Taxes (CBDT) Circulars. The Revenue, through its counsel Ms. Bokaro Sapna Reddy, appeared before the High Court. The judgment does not record any specific arguments made by the Revenue regarding the merits of the case. The primary basis for the Court's decision appears to be the applicability of the CBDT Circulars. The Respondent (assessee) was not represented by counsel, and no arguments were recorded on their behalf.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

13447 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD MONDAY, THE SEVENTEENTH 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: 451 OF 2012 Appeal filed under Section 260(4) of the lncome Tax Act, 196.1, against the order dated 03-03-20'10 passed in lrA.No. 927lHydt2004 for the assessment year 2001-2002 on the flle of the lncome Tax Appellate Tribunal Hyderabad Bench ,B' Hyderabad preferred against the order dated 13-07 -2004 passed in Appeal. No. 37lAclr-3(1)/clr(A)-lv/04-05 on the file of the commissioner of lncome Tax (Appeals)lV, Hyderabad preferred against the order dated 15-03-2004 passed in PAN/GIR No.sH-82/ AAccsg03BD on the file of the Assistant commissioner of lncome Tax, 3('1), Hyderabad. Between: Commissioner of lncome Tax-lll, lT Towers, AC Guards, Hyderabad ...APPELLANT AND M/s. shrilekha Hire Purchase Finance Limited, 1o-3-s614t1, East Marredpally, Secunderabad. ...RESPONDENT Counsel for the Appellant: Ms. Bokaro Sapna Reddy, Standing Counsel for lncome Tax Counsel for the Respondent: 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 !to.451 OF 2012 JUDGMENT: (!Et Hon'bl' sn rustice P.s<,m Koshs) Heard Ms.Bokaro Sapna Reddy, learned Standing Ccunsel for Income Tax, appearing on behalf of the appellant. 2. The instant appeal under Section 260A or thc lncome Tax Act, 1961, has been preferred by the Revenue as i.ht appellat.rt aglainst the order dated 03.03.2010 passed by the Income Ta-x Appellzrte 'l'ribunal, Hyderabad "B" Bench, Hyderabad, in I.T.A.No.927 lllyd/2OCa for the Assessment Y ear 2OO | -2OO2. 3. Central Board of Direct Taxes (CBDT) has issueci Circr-tleLr No.9 of 2024 dated 17.O9.2024, amending the previorts Circtrlar No.i-r of 2O24 dated 15.03.2024.l>y further enhancing the monetaty litnits for frling appeals by the Income Tax Department l)r,ore the Income Tex Appellate Tribunals, High Courts and Supreme {)ourt a.s .r rneasure for reducing litigation. In paragraph 2 of the said Circular, u.e hrrd that the monetary limit fixed for fiiing an appeal bt'li;:-e the l-ligh Court is Rs.2.OO crore. II

Page 2 of 3 4. In the instant appeal, tax effect is weli below the monetary limit. 5. Therefore, the appeal fired by the Revenue is dismissed in terms of the aforesaid Cir<:ul:rr No.9 of 2024 d.ated, lZ.Og.2O24. However, if the appeal comes within the exception of Circular No.S of 2024, it would be open to the Income Tax Department to seek revival of the appeal. No costs. 6 As a scquel, nris<:ellaneous applications pending if any, shall \ stand closecl SD/-K.SRINIVASA RAO JOINT REGISTRAR //TRUE COPY// ECTION OFFICER 1. The lncome Tax Appellate Tribunal Hyderabad Bench 'B' Hyderabad 2. The Commissioner of lncome Tax (Appeals)lV, Hyderabad 3. The Assistant Commissioner of lncome Tax, 3(1), Hyderabad' 4. One CC to Ms. Bokaro Sapna Reddy' Standing Counsel for lncome Tax loPUCl 5. Two CD CoPies To, VH/PSb- f

HIGH COURT DATED:1710212025 JUDGMENT lTTA.No.451 of 2012 DISMISSING ITTA o oo a B ItiE S14 It ? 1 Afi, ?J::5 ,-I,I-:l * It-':- o

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