The Commissioner of Income Tax-III, vs. Sri K.Bala Vishnu Raju,

ITTA/558/2010HC TelanganaHBHC01040314201011 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 is dismissed in terms of CBDT Circular No.9 of 2024 dated 17.09.2024. This circular, which amended CBDT Circular No.5 of 2024, enhanced the monetary limits for filing appeals by the Income Tax Department. The Court found that the tax effect in the instant appeal was well below the monetary limit of Rs.2.00 crore fixed for filing appeals before the High Court. The ratio decidendi is that appeals that do not meet the prescribed monetary limits, as per the latest CBDT circulars, are to be 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 is the dismissal of the appeal.

What were the facts?

This case involves an appeal filed by the Commissioner of Income Tax-III, Hyderabad (the Revenue) against an order dated 26.06.2009 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench B. The ITAT's order was in relation to ITA No.328/Hyd/2004 concerning Assessment Year 2000-01. The appeal before the High Court was preferred against the order of the Commissioner of Income Tax (Appeals) IV, Hyderabad, which in turn was against the order of the Assistant Commissioner of Income Tax, Circle-6(1), Hyderabad. The appeal was filed under Section 260A of the Income Tax Act, 1961. The High Court noted that the tax effect in the instant appeal was well below the monetary limit prescribed for filing appeals.

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. Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The entire decision hinges on the applicability of the CBDT Circulars. Revenue's Contention: The Revenue filed the appeal before the High Court. The judgment does not explicitly detail the Revenue's arguments for why the appeal should be heard on merits, but it implicitly relies on the appeal being filed under Section 260A. The Revenue's position is that the appeal should be considered despite the monetary limit, or that the limit does not apply in this specific instance, though this is not explicitly stated.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEAL NO: 558 OF 2010 Between: The Commissioner of lncome Tax-lll, I.T.Towers, A.C. Guards, Masab Tank, Hyderabad. ...Appellant AND Sri K.Bala Vishnu Raju, Dr.NO. 6-3-3471221A Dwarkapuri Colony, Panjagutta, . ...Respondent Counsel for the Appellant : Ms. Bokarao Sapna, Standing Counsel for Income Tax. Counsel for the Respondent : Sri K. Vasantkumar The Court delivered the following: TUESDAY, THE ELEVENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE lncome tax Tribunal Appeal under Section 260-4 of the lncome tax Act, 1961, against the Order of the Income Tax Appellate Tribunal, Hyderabad Bench B, Hyderabad in ITA No.328lHyd/2004 for Assessment Year 2000-01 dated 26.06.2009, preferred against the Order of the Commissioner of lncome Tax (Appeals) lV, Hyderabad dated 16.02 2004 in Appeal No 041/ACIT-6(1yC|T(A)- lV/03-04, preferred against the Order of the Assistant Commissioner of lncome Tax Circle-6(1), Hyderabad, dated 28.03.2003 in PAN/GIR No. B-797IAC.6(1).

. THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TA]( TRIBUNAL APPEAL No.558 OF 2O1O 2. The instant appeal under Section 26OA c;f the lncome Tax Act, i961, has been preferred by the Revenue as the apliellant against the order dated 26.06.2OO9 passed by the Income T'ax P.;rPellate Tribr-ura1, Hyderabad "8" Bench, Hyclerabad, in I.T-A.No.328 lHvdl2OO4 for the Assessment Year 20OO-0 1. 3. Central Board of Direct Taxes (CBDT) has issr-rt d Circular No.9 of 2024 dated, 17.O9.2024, amending the previou:; Circr-rlar No-5 of 2024 dated 15.o3.2024, by fi-rrther enhancing the nroneten limits for tliing appeals by the Income Tax Department before ille Income Tax Appellate Tribunals, High Courts and Supreme Courl' Lls a measur-e for reducing litigation. In paragraph 2 of the said Circ-rlar' -'ve find that the monetar;z limit fixed for filing an appeai befcre the High Court is Rs.2.O0 crore. THE HON',BLE SRI JUSTICE P.SAM K()!iH! AND JUDGMENT'. ber ttot 'bte sn rustia' Psom (oshel Heard Ms.Bokaro Sapna Reddy, learned Standing Counsel for Income Tax, appearing on behalf of the appellant.

Page 2 of 3 4. In the insta.nt 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.O9.2O24. However, if the appeal comes r.vithin the exception of Circular No.5 of 2024, it wor-rld be open tc) the Income Tax Department to seek revival of the appeal. No costs. 6, As a sequei, ruiscellaneous applications pending if any, shall stand closed. Sd/- K. SRINIVASA RAO JOt T REG]STRAR //TRUE COPY// E TION OFFICER To, 5. 6. DL/gh 1 2 J 4 The lncome Tax Appellate Tribunal, Hyderabad Bench B, Hyderabad. The Commissioner of lncome Tax (Appeals) lV, Hyderabad. The Assistant Commissioner of lncome Tax Circle-6(1), Hyderabad. One CC to Ms. Bokarao Sapna, Standing Counsel for lncome Tax loPUcI One CC to Sri K. Vasantkumar, Advocate [OPUC] Two CD Copies w

DATED:1110212025 JUDGMENT ITTA.No.558 ol 2010 DISMISSING THE APPEAL $c. SlAr€ 1 c) 21 h$ 2[25 7- L) + t gr: ) p^1 ->.1;:-3 \I .l d.6 HIGH COURT @

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