The Commissioner of Income Tax-V vs. Sri K.Mohan Prasad

ITTA/472/2010HC TelanganaHBHC01034923201010 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, which amended Circular No. 5 of 2024. The Court noted that the tax effect in the instant appeal was well below the enhanced monetary limit of Rs. 2.00 crore for appeals before the High Court. The Court also stated that if the appeal came within the exceptions of 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. The specific merits of the ITAT's order were not adjudicated upon.

What were the facts?

This is an Income Tax Tribunal Appeal filed by the Revenue (Commissioner of Income Tax-V, Hyderabad) against an order dated 24-10-2008 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. The appeal pertains to Assessment Year 2003-2004 and challenges the ITAT's decision in ITA No. 199/Hyd/2007. The original order was passed by the Income Tax Officer, Ward -10(4), Hyderabad, and subsequently appealed before the Commissioner of Income Tax (Appeals)-VI, Hyderabad. The tax effect in this appeal was not explicitly stated but was noted to be well below the monetary limit for filing appeals before the High Court as per a subsequent CBDT circular.

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. 9 of 2024 (amending Circular No. 5 of 2024). The Revenue contended that the appeal was filed in accordance with the law applicable at the time of filing. The Revenue also argued that if the appeal falls within the exceptions of Circular No. 5 of 2024, it should be considered for revival. The ITAT's order dated 24-10-2008 is the subject matter of challenge, but the specific grounds on which the ITAT decided the case are not detailed in this High Court judgment.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

43447 1 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD MONDAY, THE TENTH 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:472 OF 2010 lncome Tax Tribunal Appeal Under Section 2604 of the lncome Tax Act,196'1 against the Order dated 24-10-2008 passed in ITA No. 199/Hyd/2007 for the Assessment Year 2003-2004 on the file of the lncome Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad preferred against the Order dated 16-11-2006 passed in Appeal No.03 1 6/05-06/lTOAl/d -1 0(4)lHydlClT(A)-Vl/2006-07 on the file of the Commissioner of lncome Tax (Appeals)-Vl, Hyderabad preferred against the Order dated 30-'1 1-2005 passed in P.A.N./G.l.R. No,AFt\ilPJ29O7F on the file of the lncome Tax Officer, Ward -10(4), Hyderabad. Between: The Commissioner of lncome Tax-V, lT Towers, Masabtank, Hyderabad ...Appellant AND Sri K.Mohan Prasad, H.No.1-1-92, RP Road, Secunderabad ...Respondent Counsel forthe Appellant: Ms. Sapna Reddy, representing Sri J V Prasad, Sc for lncome Tax Counsel forthe Respondent: Sri K Raji Reddy The Court delivered the following: Judgment

THE HI)NOURABLE SRIJUSTICE P.SAM KOSHY AND THE HoNOURABLE SRI JUSTICE NARSTNG RAO NANDIKONDA ITTA No.472 OF 2010 JUDGMENI-: (per Hon'ble Sri Justice P.Sam Koshy) Heard Ms B.Sapna Reddy, leamed Junior Standing Counsel reprlsenting Mr. J.V.Prasad, leamed Senior Standing Counsel for tlLe Income Tax Department for the appellant. perused the record 2. This aJ,pea under Section 260.{ of the Income Tax Act, 1961, has b:en preferred by the Revenue as the app,:llant against the order dated 24.10.2008 passed by the Incorne T'ax Appellate fr ibur al, Hyderabad Bench 'B', Hl,derabad, in I.T. A.No. 1 991 11 / y dl 2rJ07 for the Assessment year 2003 -04. 3. Central Board of Direct Taxes (CBDT) has issuecl Circular No.9 ol 2024 dated 17.09.2024, amending the previous Cir;ular No.5 of 2024 laterl 15.03.2024, by further enhancing the mon:rary limits for filin3 appeals by the Income Tax Department befor,: the Income Tax Appt:llate Tribunals, High Courts and Supreme Ooun ,

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. In the instant appeal, tax effect is well below the monetary 4 limit 5. Therefore, the appeal filed by the Department is dismissed in terms of the aforesaid Circular No.9 of 2024 date:d 17.09.2024. iJowever, if the appeal comes within the exception of Circular No.5 of 2024, it would be open to the Incorne Tax Department to seek revival ofthe appeal. There shalr be no order as to costs. 6. Consequently, rniscellaneous petitions pending, if any, shall To, ADK/ghw stand closed. Sd/- K. SRINIVASA RAO J INT REGISTRAR //TRUE COPYII CTION OFFICER '1. The lncome Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad 2. The Commissioner of lncome Tax (Appeals)-Vl, Hyderabad 3. The lncome Tax Officer, Ward -'10(4), Hyderabad 4 one CC to Sri J V Prasad, Sc for lncome Tax, IoPUC] 5. One CC to Sri K Raji Reddy, Advocate [OPUC] 6. Two CD Copies

'*.-.:iE{-EEfEEEE HIGH COURT DATED:10 t02t2O2S JUDGMENT ITTA.No.4T2 of 2O1O DISMISSING THE ITTA WITHOUT COSTS 2[?5 --'a':=:'1 7(;'' ":'*' s' t //< i r,;.: ir:-iii 02 \PF 'i :. t..')o \: * - "\_ irr ' r' Fc, ri 7 C ' ';// i.? .rd4 i I t X#' I

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