Commissioner of Income Tax-III vs. M/s. Navayuga Transtroy JV

ITTA/52/2012HC TelanganaHBHC01075828201217 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 dismissed in terms of CBDT Circular No. 9 of 2024, dated 12.09.2024, as the tax effect was well below the monetary limit of Rs. 2.00 crore for filing appeals before the High Court. The Court reasoned that the circular was issued to reduce litigation. The ratio decidendi is that appeals filed by the Revenue that do not meet the prescribed monetary limits are to be dismissed. The operative direction was the dismissal of the appeal. The Court also noted that if the appeal fell within any exception to Circular No. 5 of 2024, the Income Tax Department could seek revival of the appeal. No costs were awarded. Any pending miscellaneous applications were also closed.

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 07-07-2010 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. This ITAT order was in relation to ITA No. 514/Hyd/2010 for Assessment Year 2005-2006. The ITAT order was preferred against an order dated 26-02-2010 passed by the Commissioner of Income Tax (Appeals)-IV, Hyderabad, which in turn was against an assessment order dated 29-10-2007 passed by the Income Tax Department. The assessee is M/s. Navayuga Transtroy JV. The appeal was 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 this Court, considering the monetary limits for filing appeals as stipulated by CBDT Circulars. The Revenue, represented by Ms. Bokaro Sapna Reddy, learned Standing Counsel for IT, appeared before the Court. The judgment does not record any specific arguments made by the Revenue on the merits of the case. The primary focus of the Court's consideration was the applicability of CBDT Circular No. 9 of 2024, dated 12.09.2024, which amended previous circulars and enhanced monetary limits for filing appeals. The Court noted that the tax effect in the instant appeal was well below the stipulated monetary limit for filing appeals before the High Court, which was Rs. 2.00 crore as per paragraph 2 of the said circular.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

434471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD .'fuoruonv, THE sEVENTEENTH DAy oF FEBRUARy TWO IHOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEAL NOi 52 OF 2012 Appeal filed under Section 260(4) of the lncome-Tax Act, against the order dated. 07-07-2010 passed in lTA.No.514/Hydl2010 for Assessment years 2005- 2006 on the file of the lncome Tax Appellate Tribunal Hyderabad Bench ,8,, Hyderabad preferred against the Order dated: 26-02.-2010 passed in Appeal r-,.,1 No.0082/lTO 6(3)/ClT(A)-lV/07-08 on the file of the Commissioner of lncome Tax (Appeals)-lV, Hyderabad preferred against the Assessment Order dated: 29-10-2007 passed in PANiGIR No. AJtauAN 3691F/N-61'1 on the file of the lncome Tax Department. Between: Commissioner of lncome Tax-lll, lT Towers, A.C. Guards, Hyderabad ...APPELLANT AND M/s. Navayuga Transtroy JV,8-2-2931821N1259, Lakshmi Towers, Road No,36 Jubilee Hills, Hyderabad ...RESPONDENT Counsel for the Appellant: Ms. BOKARO SAPNA REDDY, S.C. FOR l.T. Counsel for the Respondent: --- The Court delivered the following: JUDGMENT '

THE HON'BLE SRI JUSTICE P.SAM KOSHY THE HON'BLE SRI JUSTICE NARSING RAO NANDIK(INDA INCOME TA}( TRIBUNAL APPEAL No.52 OF 2O11i JUDGMENT: b<tltoL'bIe snJ stice P.s".mKosha) Heard Ms.Bokaro Sapna Reddy, learned Stail'lirlg C'runsel for Income Tax, appeeu-ing on behalf of the appellant' 2. The instant appeal under Section 260A ol Lhe Int:ore Ta;i Act' 1961, has been prt:ferrecl by the Revenue as the ap'reilant- I rgainst the orderdatedoT.oT.2olopassedbythelncomeTa>:i\llpr:l1irt-Tribunai, Hyderabad "B'' Br:r-rch, Hyderabad, in I.T'A'No 514/'i-llid/2(rl0 for the Assessment Year 120O5-06. S.Centra]BoarrlofDirectTaxes(CBDT)hasi..;suect]ircll1arNo.9of 2024daled'lT.og.2024,amendingthepreviortsCit.ll-i.ltlrNll.5<rf2l)24 dated 15.o3.2 O24, by further enhancing the mt-.nt:tnr-y iirlli:s fc'r llling appeals by the Income Tax Department be tix'e i iie lr rcorrre Tax Appellate Tribunals, High Courts artd Supreme tloiiI:' 3r i: rreasur': ibr reducing litigatior-r. In paragraph 2 of the said (li;-': r [i";-, x c iind that the monetary limi xecl for filing an appeal }:eft;rc tlrc llir1h Cot-rrt is Rs.2.OO crore. AND

Page 2 of 3 4 In tire instant a1-.peal, tax effect is well bekjw the monetary limit. 5. Therefore, the appeal filed by the Revenue is dismissed in terms oI the aforcsaid Circular No.9 of 2024 dated 12.O9.2O24. However, if the appeal comes inithin the exception of Circular No.S of 2024, it u,ould be open to the Income Tax Department to seek revival of the appeal. No costs. 6. As a se<1ucl. ntiscellaneous applications pending if any, shall srand closcci Sd/. K. SRINIVASA RAO JOINT REGISTRAR //TRUE COPY// TION OFFICER To, The lncome Tax Appellate Tribunal Hyderabad. Bench 'B" Hyderabad i';; i;;l..rnei of lncome Tax (Appeals)-tv'iya^e17nao o;;;; i; M; Bokaro sapna Reddv' s c for l T loPUCl 1 2 3 4 Two CD CoPies Plpigha ,/ ;{xi I l I ! t .tr.;-

t HIGH COURT DATED:1710212025 JUDGMENT ITTA.No.S2 of 2012 DISMISSING THE APPEAL. =-:- .....-.--\ r i{E J Y a ( 2 / t{r'it iBiS , * .DEEP,T .:0 :lr,':' ' fv, {$ , W j

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