THE PR COMMISSIONER OF INCOME TAX,HYD vs. M/S.HST STEELS PVT.LTD., HYD

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ITTA/561/2015HC TelanganaHBHC01017856201503 August 2023Bench: P.SAM KOSHY,LAXMI NARAYANA ALISHETTY4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue is not maintainable. The Court referred to CBDT Circular No. 17 of 2019, which revised the monetary limits for filing appeals by the Income Tax Department before the ITAT, High Courts, and Supreme Court to reduce litigation. Specifically, the circular fixed the monetary limit for filing an appeal before the High Court at Rs. 1 Crore. The Court observed that the tax effect in the present appeal was well below this prescribed monetary limit. Therefore, in terms of the aforesaid Circular No. 17 of 2019, the appeal was dismissed. The Court also noted that if the appeal fell within an exception under paragraph 10 of Circular No. 3 of 2019, it would be open to the Income Tax Department to seek revival of the appeal.

What were the facts?

This case involves an appeal filed by the Principal Commissioner of Income Tax, Central, Hyderabad (the Revenue) against an order dated April 30, 2015, passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'A'. The appeal pertains to Assessment Year 2007-2008 and challenges the ITAT's order in ITA No. 1913/Hyd/2014. This order, in turn, was preferred against the order of the Commissioner of Income Tax Appeals-I, Hyderabad, which had confirmed the order of the Assistant Commissioner of Income Tax, Central Circle 5, Hyderabad. The assessee is M/s. HST Steels Pvt. Ltd. The dispute concerns the tax liability for the specified assessment year.

What were the issues?

1. Whether the appeal filed by the Revenue before the High Court is maintainable in light of the monetary limits prescribed by the Central Board of Direct Taxes (CBDT) Circulars for filing appeals. The Revenue, as the appellant, is challenging the order of the ITAT. The Revenue's contention is that the appeal is filed under Section 260A of the Income Tax Act, 1961. The Revenue relies on CBDT Circular No. 17 of 2019, which supersedes Circular No. 3 of 2019, and sets a monetary limit of Rs. 1 Crore for filing appeals before the High Courts. The Revenue argues that the present appeal's tax effect is well below this monetary limit. The Respondent (assessee) has not recorded any specific arguments in the judgment.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

[ 3386 ] IN HIGH COURT FOR THE STATE OF TEI-ANGANA AT HYDERABAD THURSDAY,THE THIRD DAY OF AUGUST TWO THOUSAND AND TWENW THREE PRESENT THE HONOURABLE SRl JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE LAXMI NARAYANA ALISHETTY INCOME TAX TRIBUNAL APPEAL NO: 561 OF 201s (lncome Tax Tribunal Appeal Under Section 260-4 of the lncome Tax Act, against the order of the lncome Tax Appellate Tribunal, Hyderabad Bench ' A ', Hyderabad in ITA No.1913/Hyd12014, for assessment Yeat 2OO7 -2008, dated 30-04-2015, preferred against the Order of the Commissioner of lncome Tax Appeals-|, Hyderabad, ITA No.0275 & 276lCC-5, Hyd/ClT(A)-1113-14114-15 dated 24-10-2014, prefened against the Order of the Assistant Commissioner of lncome Tax Central Circle 5, Hyderabad, PAN/GIR No.A./qACH5922B, dated 07.03.2013) Between: The Pr. Commissioner of lncome Tax, (Central, Hyderabad. ...APPELLANT/APPELLANT AND M/s.HST Steels Pvt.Ltd., (PAN AAACH5992B) Plot.No. 401/A, lDA, Balanagar Hyderabad-500034 ...RESPONDENT/RESPoNDENT Counsel for the Appellant :SRl. J. V. PRASAD (SC FOR INCOME TA,\) Counsel for the Respondent :SRl T. V. RAMANA RAO The Court made the following: l l I i :

THE HON'BLE SRI WSTICE P.SAM KOSEY AND THE HON'BLE SRI JUSTICE A. LAXMI NARAYANA I.T.T.A. No. 561 of 2O15 .I@Q!(EN!: fp,, r I'Io n' b te S t. . t t t s tt( e P. sAIfi KOSHY I Heard Sri,J.V.Prasad, learned Senior Standing Counsel appearing for tJrc appellant. '). This appeal undc:- Section 260A ci the lncorri: Tax /rct, 1961. iras been preferred by the llcr-cnuc as rhc appellart agairrst Lhe order dt.30.04.2015 passed bv the l comc 'lax Appellate Tribunal, t{yderabad llencfi 'A' Hydcrabad. rn l.'l'.A.No 19lill1vd/2014 for r:he Assessment Year 2007..o8. 3. Ce:1tra-I Boalcl rrI l)ircct ]':rxc:; (CIll-r'l l hars iss',lsd Clrculclr Nc. ] 7 ol 2019 dt 08 0t1.2019, .r,rcrr.1rrrg thr [)ti.\,ioLts Circular No.3 of 20lg dt.l 1.07.2018 by lurrhcr crrir.rnr rnli lh(. rronctirr-y limits fot filirrg appcals bv the income Ta-r I-)cPartnrcnL i;t lort- rtr(r In(:orno iax Apo.--llate Tribunals- High Courts and Srtpr(:mc (lolrrr as a mcaslrrc lor lcducrng titigation. In paragraph 2 of the -s;rrd (iirt.rriar. ',vr: lind rhar tix rr..)netiiry linl( lixed lbr hhng ;rn appcal beforc- lirc itrglr (.()Lri t ;s r.i:-, I O0 (-rorc. 4 I1r the iltstanl aupcal, rar .:[[ccr rs rvcll tre lorv rt-rc rnonetary J.irnit. 5. l'h.-rcIbrs. thc apl,ciri :iltd b-t rhc l)r:Jra;r;1611i is ilrslnissecl in [<:rms of the aioresaid Ctrc::lar llo.i7 of l0ir) clr.Uti.0lt 20 19. Ljtr! rve:.. il the :rppcal comcs vrithin,thc cxcr-:l:r,,,rr un(lr r piu.irgr.;lirir l0 ol ( iri !lar No.3 ol 20lit. rr,

2 would be open to the lncome Tax Department to seek revival of the appeal No order as to costs Consequently, miscellaneous Petitions pending, if any, shall stand closed 6 Sd/. K. SRINIVASA RAO JOINT REGISTRAR Y:9,' SECTION OFFICER //TRUE GOPY// To, 1. The lncome Tax Appellate Tribunal, Hyderabad Bench ' A " Hyderabad z. The Commissioner of lncome Tax Appeals-|, Hyderabad' 3. The Assistant Commissioner of lncome Tax Central Circle 5' Hyderabad. 4. One CC to SRl. J. V PRASAD (SC FOR INCOME TAX) IOPUCI 5. One CC to SRl. T. V. RAMANA RAO' Advocate IOPUC] 6. Two CD CoPies DL '\)P'-

HIGH COURT OATED:03/08/2023 JUDGMENT lTTA.No.561 of 2015 DISMISSING THE APPEAL \ \x ,9 ,* o v 5TAT 5 qA c) ts [\t$ ,,(O q fc.o i I n:",r':'

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