THE COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION), HYD vs. M/S. M W SINGAPORE PTE LTD., HYD

ITTA/554/2016HC TelanganaHBHC01076709201625 September 2025Bench: P.SAM KOSHY,SUDDALA CHALAPATHI RAO4 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 that the tax effect in the instant appeal was well below the monetary limit of Rs. 2.00 crore, as stipulated by CBDT Circular No. 9 of 2024 for filing appeals before the High Court. The Court directed that the appeal be dismissed in terms of the said circular. However, the Court also provided a conditional relief, stating that if the appeal comes within the exceptions of Circular No. 5 of 2024, it would be open for the Income Tax Department to seek revival of the appeal. No order as to costs was made. Any pending miscellaneous petitions were also ordered to stand closed.

What were the facts?

The Revenue, Commissioner of Income Tax (International Taxation), Hyderabad, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 30.06.2015 passed by the Income Tax Appellate Tribunal (ITAT), Bench B, Hyderabad. The appeal pertains to Assessment Year 2006-07. The respondent is M/s. MW Singapore Pte Ltd. The appeal was filed by the Revenue, but no counsel appeared for the respondent. The High Court noted that the Central Board of Direct Taxes (CBDT) had issued Circular No. 9 of 2024, amending Circular No. 5 of 2024, to enhance monetary limits for filing appeals to reduce litigation. The monetary limit for filing an appeal before the High Court was fixed at Rs. 2.00 crore.

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 CBDT Circular No. 9 of 2024? Assessee's Contention: Not recorded as no counsel appeared. Revenue's Contention: The Revenue, through its counsel, presented the appeal. The appeal is filed under Section 260A of the Income Tax Act, 1961, against the ITAT's order. The Revenue relies on the fact that an appeal has been filed, implying a belief in its merit or the existence of substantial questions of law, notwithstanding the monetary limits. The Revenue's argument would implicitly be that the appeal should be heard on its merits, or that it falls within any exceptions to the circular.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY, THE TWENTY FIFTH DAY OF SEPTEIVIBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE P,SAM KOSHY AND THE HONOURABLE SRI JUSTICE SUDDALA C,HALAPATHI RAO INCOME TAX TRIBUNAL APPEAL NO: 554 OF 2016 Appeal under section 2604 of the lncome Tax Act, '1961, against order of the lncome Tax Appellate Tribunal Bench B Hyderabad, in lTA.No. 3OlHydl2O15, for the Assessment Year 2006-07, dt. 30 06.2015. Between: THE COMMTSSTONER OF TNCOME TAX (|NTERNAT|ONAL TAXATTON), HYD, Hyderabad APPELLANT AND M/S. M W SINGAPORE PTE LTD., HYD, Plot No. 1264, 2nd and 3rd Floor, Sai Sikha, Road No.36, Jubilee Hills, Hyderabad. RESPONDENT Counsel for the Appellant : SRl. VIJHAY K PUNNA (SENIOR SC FOR ITD) Counsel for the Respondent : NONE APPEARED The Court delivered the following: JUDGMENT

THE IIONOTIRABI,E SIU .IUSTICE P.SAM K(,I TIY AND THE HONOURABLE SRI JUSTICE SUDDALA CHAL.1.-'A'TI{I RAO IT-I'A No.554 of 2016 .f tIDGMENT:1per Ilon'blc Sri .lusrit:a ?.Son Koshy) Heard Mr.Vijhay K.Puma. leamed Seni,r Standing Appellate Tribunal, I{1'derabad Bench 'B', }1 y lerabad, Counsel for the lncorne Tax Departrnent fbr tl r appellant Pclused tl-re rccord. against the order dated 30.06.2015 passed b), thr: lncome 'l'ar 2. This appeal r-rnder Section 260.4 of the Incr r re 1-ax Act, I9(r1, has been prcl-erred by the Revenue as Ie appellant ln l I I.T.A.No.30/FIyd/20 l5 tbr the Assessment Year 200( - )l 3. Central Board ol Direct Taxes (CBDT) has i: s .red (-ilcr-ilar No.9 of 2024 dated 17.09.2024, amending the ple:. irus Circular No.5 of 2024 dated 15.03.2024, by furlher enhancing he monetarl. lin.rits for filing appeals by the lncome Tax Depannr: rt belore the Income Tax Appellate 'I'ribunals, High Courts and Su :ren.re Couft as a measuie for reducing litigation. In paragraph I of the said

2 To, Circular, wc find that tlie monetary iimit flxed for filing an appeal before the High Court is Rs.2.00 crore. 4. ln the instant appeal, tax eI}'ect is rvell below,the monetarv limit. 5. Therelbre , the appeal filed by the Department is disrnissed in terms o1'the albresaid Circulal No.9 ol 2024 dated 11.09.2021 However, if tlie appeal comcs u,ithin the exception of Circular No.5 ol 2024, it r.vould bc open to tl-ie Incorne lax Depaftrncnt to seek revival olthe appeal. TheLe shall be no order as to costs 6. Consequently, miscellaneous peritions pending, if any. shall stand closed. SD/.P GOWRI SHANKAR DEPUTY REGISTRAR //TRUE COPY// ECTION OFFICER '1. The lncome Tax Appellate Tribunal, Bench 'B', Hyderabad. 2. One CC to SRI VIJHAY K PUNNA (SENIOR SC FOR ITD) Advocate loPUCl 3. Two CD Copies

i HIGH COURT DATED:2510912025 JUDGMENT ITTA.No.554 ot 2016 DISMISSING THE APPEAL ) .'-,.'., :,.,:::.'. :r i::i i \i\ i L.-; iM 'i'. , ; 1.;1.1r !| _ \" p

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