Commissioner of Income Tax - I vs. M/s. A.P. Industrial Infrastructure Corpn. Ltd.

ITTA/57/2016HC TelanganaHBHC01038701201603 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 was dismissed. The Court noted that the Central Board of Direct Taxes (CBDT) had issued Circular No. 17 of 2019, which enhanced the monetary limits for filing appeals by the Income Tax Department. Specifically, the monetary limit for filing an appeal before the High Court was fixed at Rs. 1.00 crore. The Court observed that in the instant appeal, the tax effect was well below this stipulated monetary limit. Therefore, the appeal filed by the Department was dismissed in terms of the aforementioned Circular. The Court also noted that if the appeal fell within the exceptions under paragraph 10 of Circular No. 3 of 2018, the Income Tax Department could seek revival of the appeal. No order as to costs was made.

What were the facts?

The Revenue, as the appellant, filed an appeal before the High Court against an order dated 22.11.2011 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench. The ITAT's order was in relation to ITA No. 1472/Hyd/2010 for the assessment year 2003-2004. This appeal stemmed from an order dated 15.09.2010 by the Commissioner of Income Tax Appeals-IV, Hyderabad, which in turn was against an order dated 31.12.2009 by the Assistant Director of Income Tax (E)-III. The respondent in this High Court appeal is M/s. A.P. Industrial Infrastructure Corpn. Ltd. The learned Senior Standing Counsel appeared for the appellant (Revenue), while no one appeared for the respondent.

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 CBDT Circulars. The Revenue contended that the appeal was filed in accordance with the law. The Respondent did not present any arguments as they did not appear. The core issue revolves around the tax effect of the appeal and its compliance with the monetary threshold set by CBDT Circular No. 17 of 2019, which amended Circular No. 3 of 2018, for filing appeals before the High Court.

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 TELANGANA AT HYDERABAD THURSDAY,THE THIRD DAY OF AUGUST TWO THOUSAND AND TWENry THREE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY THE HoNouRABLE sRr JUS,IE'*r*' NARA'ANA ALT'HET* INCOME TAX TRIBUNAL APPEAL NO: 57 OF 2016 (lncome Tax Tribunar Appear Under section 260-4 of the rncome Tax Act, against the order of the lncorne Tax Appellate Tribunal, Hyderabad Bench , B ,, Hyderabad in lrA No.1472lHydl2o1o, for assessmenr yeat zoo3-2004 dated 22.11.2011 preferred against the order of the commissioner of rncome Tax Appears-rV, Hvderabad, Appear f'lo. S29/AD|r(EH r r/c rr(A)-rvi0g- 1 o dated 1 5.09. 20 1 0, prefened against the order of the Assistant Director of rncome Tax (E)-ilr pAN/GrR NoA.268 dated 31.12.2009.) Between: The Commissioner of Income Tax - l, Hyderabad AND ..APPELLANT/APPELLANT M/s. A.P. lndustriar rnfrastructure corpn. Ltd., parishram Bhavan, gastreerbagh, Hyderabad. ...RESPONOENT/RESPONDENT Counsel for the Appellant : SRl. J. V. PRASAD (SC FOR TNCOME TAX) Counsel for the Respondent: NONE APPEARED The Court made the following: l l I I I I 11 I i I I

THE HON'BLE SRI JUSTICE P.SAM KOSITY AND THE HON'BLE SRI JUSTICE A. II\XMI NARAYANA I.T.T.A. No. 57 of 2O16 JI,DGMENT (per I l<nr'bLe .Sn Justrce P.Sd/t, ,fOSHy, Heard Sri J.V.Prasad, Iearned Senior Standing Counsel appearing for thc appellant. 2. This appeal under Section 260A of the Income Tax Act, 1961' has been preferred by the Revenue as the dppellant against the order dt.22.l t.20 I t passed bv the lrrr:ome Ta;i Appellate Tribunal. Hyderabad Bench 't3'. Hlderabad. in l.T.A.No. VT2lHydl2Olo for the Assessment Yt:ar 2003-0.1 3. Central Iloarcl of l)irect Taxes (CBDT) has issued Circular No 17 of 20 l(r ct(.08.UiJ.20 19. amending the previous Circular No 3 of 2OI8 dt. t 1.07 20 18. bv ftirthcr cnhancirrg the monetary limits for hling appeals bl, the lncome 'Ia-{ Department befcrre the Income Tax Appellate Tribunals. Hrgh Courts and Suprcme Court as a measure for reducing litigatron. [n Par.tgraph 2 cf the sairl Oircuiar. we lind that the monetary limit fixed for fihrrg an appeal before the High Court is Rs. l.0O crore. 4. In the instant appcal, tax effect rs well beiow the monetary limit. 5 Thcrefore, the appeai hled by the f)ePartment is dismissed in terms cf the aforcsaid Crrcular lrio.IT of 20l9 dt.08.O8.20I9. Flowever, if the appcal crmes u.ithin the exception under paragraph 1O of Circula:- No 3 of 2O18. rt

(r 2 would be open to the Income Tax Department to seek revtval of the appeal. No order as to costs Consequenfly, rniscellaneous petitions pending, if any, shall stand closed 6 i I I I I I / Sd/. B.S. CHIRANJEEVI JoINT REGISTRIAR //TRUE COPY// SECTION OFFICER To, t. The lncome Tax Appellate Tribunal, Hyderabad Bench ' B Hyderabad (with record, if any) 2. The Commissioner of lncome Tax Appeals-lV, Hyderabad, 3. The Assistant Director of lncome Tax (E)-lll , Hyderabad 4. One CC to SRl. J. V. PRASAD, SC FOR INCOME TAX [OPUC] 5. Two CD Copies \ DL \,)*.--

HIGH COURT DATED: 0310812023 JUDGMENT !TTA.No.S7 of 20'16 DISMISSING THE APPEAL $ \ 2s * :)oo C) ,tt ,4J I t C. oF ,i:l T S r e e' 'f\ 1 t [uG 1m $ t ,) A

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