Commissioner of Income Tax-III vs. M/s.Limak - Soma [JV]

ITTA/536/2011HC TelanganaHBHC01015761201106 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. This decision was based on CBDT Circular No.9 of 2024 dated 17.09.2024, which amended Circular No.5 of 2024 dated 15.03.2024, by enhancing the monetary limits for filing appeals. The circular fixes the monetary limit for filing an appeal before the High Court at Rs.2.00 crore. The Court noted that the tax effect in the instant appeal was well below this prescribed monetary limit. Consequently, the appeal was dismissed. The Court also noted 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 costs were awarded. The operative direction was the dismissal of the appeal.

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 06.08.2010 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench A. This order was in relation to ITA No.173/Hyd/2010 for Assessment Year 2006-2007. The appeal was preferred against an order dated 15.12.2009 by the Commissioner of Income Tax (Appeals) IV, Hyderabad, which in turn was against an order dated 21.08.2008 by the Assistant Commissioner of Income Tax Circle-6(1), Hyderabad. The assessee is M/s. Limak-Soma 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 the High Court in light of the monetary limits prescribed by the Central Board of Direct Taxes (CBDT) Circulars. The Revenue argued that the appeal was filed under Section 260A of the Income Tax Act, 1961. The judgment does not record any specific arguments from the Revenue regarding the merits of the case, but rather focuses on the procedural aspect of the appeal's maintainability. The Revenue's implicit contention would be that the appeal is validly filed. The judgment does not record any arguments from the Assessee.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

[34471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY, THE SIXTH 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 TRIBU NAL APPEAL NO: 536 OF 2011 lncome tax Tribunal Appeal under Section 260-A of the lncome tax Act' 1961, against the Order of the income Tax Appellate Tribunal, Hyderabad Bench A, Hyderabad in ITA No.173lHydl2010 for Assessment Year 2006-2007 dated 06.08.20'10, preferred against the Order of the Commissioner of Income Tax {-Y'f (Appeals) lV, Hyderaba d dated 15 12.2009 in lTA. No 0139/DCIT-6(1yClT(A)-lVl6B- 09 AY 06-07, preferred against the Order of the Assistant Commissioner of lncome Tax Circle-6(1), Hyderabad, dated 21.08.2008 in PAN No. AAAAL14BSF GIR No L- 334. Between: Commissioner of lncome Tax-lll, lT Towers, AC Guards, Hyderabad ...APPellant AND tr/l/s.Limak - Soma [JVl, 8-2-6231511-A 1114, Avenue-A, Banjara Hills, Hyderabad ... ResPondent Counsel for the Appellant : Ms. Bokarao Sapna, Standing Counsel for lncome Tax. Counsel forthe Respondent: Sri T.Bala Mohan Reddy The Court delivered the following: I I I I

THE HON'BLE SRI JUSTICE P.SAM KOSI{Y AND THE HON'BI,E SRI JUSTICE NARSTNG RAO NANDIKONDA INCOME TAx TRIBUNAL APPEAL No.536 OF 2O11 JUDGMENT'. ber ilc l''tne Sri ,lustice Psorn -iaos/ryl Heard Ms.Bokaro Sapna Reddy, learned Standing Counsel for Income Tax, appearing on behalf of the appellant. 2. The instant appeal under Section 260A of the Income Tax Act, 1961, has been preferred by the Revenue as the appellzrnt against the :\ ' order dated 06.08.201O passed by the Income Tax Appellate Tribunai, Hyderabad'A" Bench, Hyderabad, in I.T.A.No.173 lHyd/2010 lor rht: Assessment Year 12006-07. 3. Central Boar-d of Direct Taxes (CBDT) has issued Circular No.9 t;i' 2024 dated 17.O9.2024, amending the previous Circular No.5 of 2024 dated 15.O3.2O24, b1' further enhancing the monetar5r limits for filing appea,ls by the Income Tax Department before the Income Tilx Appellate Tribunats, High Courts and Supreme Court as a measure for reducing litigation. In paragraph 2 of tlre said Circular-. we fincI tlrat the monetary limit flxed for filing an appeal before the High Court is Rs.2.0O crore. '' '- ..,j I I I

i,'-rz Page 2 of 3 4" In the instant appeal, tax effect is well below the monetary limit. 5. Therefore, the appeal filed by the Revenue is dismissed in terms of the aforesaid Circular No.9 of 2024 dated 17.09.2024. However, if tfir appeal comes within the exception of Circular No.S of 2024, it r.vould be open to the Income Tax Department to seek reviva,l of the appeal. No costs. 6. As a sequel, miscellaneous applications pending if any, shall st irncl closed. Sd/- A.V.S.S.C,S.M. SARMA OINT REGISTR,qR //TRUE COPYI/ ECTION OFFICER To, 1 . The lncome Tax Appellate Tribunal, Hyderabad Bench A, Hyderabad. 2. fhe Commissioner of lncome Tax (Appeals) lV, Hyderabad. 3. The Assistant Commissioner of lncome Tax Circle-6(1), Hyderabad, 4. one CC to [/ls. Bokarao Sapna, Standing Counsel for lncome Tax loPUCl 5. one CC to Sri T.Bala ttlohan Reddy, Advocate [oPUC] 6. Two CD Copies DL/gh Y*, :

HIGH COURT DATED:06/02/2025 JUDGMENT ITTA.No.536 of 201'1 DISMISSING THE AI'PEAL ."{4 g N6 APB T4 s E I H 1 E. PAT t t)F c ( o C, ^r 92 .b 2U6 Ej; q- ff\a5 I I

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