COMMISSIONER OF INCOME TAX-III, vs. VERTEX HOMES PRIVATE LIMITED

PDF · subscribers
ITTA/574/2013HC TelanganaHBHC01067713201321 April 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 dismissed in terms of CBDT Circular No. 9 of 2024, dated 17.09.2024. 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 an appeal before the High Court as per the said circular. The reasoning was based on the explicit instructions within the circular to reduce litigation by enhancing monetary limits. The operative direction was to dismiss the appeal. The Court also noted that if the appeal came within the exceptions of Circular No. 5 of 2024, it would be open to the Income Tax Department to seek revival of the appeal. No issue was expressly left undecided.

What were the facts?

The Revenue, as the appellant, filed an Income Tax Tribunal Appeal under Section 260-A of the Income Tax Act, 1961, challenging an order dated 12.10.2012 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad. The appeal pertains to Assessment Year 2008-2009. The respondent is Vertex Homes Private Limited. The appeal was filed by the Revenue against the order of the ITAT. The High Court noted that the Central Board of Direct Taxes (CBDT) had issued 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 by the Income Tax Department. The circular fixed the monetary limit for filing an appeal before the High Court at Rs. 2.00 crore.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court given the monetary limits prescribed by the CBDT circulars. The Revenue, through its counsel, argued that the appeal was filed under Section 260-A of the Income Tax Act, 1961. The Revenue relied on the CBDT Circular No. 9 of 2024, dated 17.09.2024, which enhanced the monetary limits for filing appeals. The Revenue contended that the tax effect in the instant appeal was well below the revised monetary limit. The Respondent (Vertex Homes Private Limited) did not appear before the High Court, and therefore, no arguments were recorded on their behalf.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD MONDAY,THE TWENTY FIRST DAY OF APRIL TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY & THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEAL NO: 574 OF 2013 lncome Tax Tribunal Appeal filed Jnder section 260-4 of the lncome Tax Act,lg6l,aggrievedbytheorderdated'12.10.2O12.,ofthelncometaxAppellate Tribunal, passed in l.T.A.No.979/H ydt2012, for the Assessment Year 2008- 2009,on the file of the lncome tax Appellate Tribunal, Hyderabad Bench '8" Hyderabad. Between: COMMISSIONER OF INCOME TAX-Ill, lT Towers, A'C Guards, Masab Tank' Hyderabad. ...APPELLANT AND VERTEX HoMES PRIVATE LIMITED, Plot No. 8iB, Nizampet Road, Kukatpally' HYderabad ...RESPoNDENT coun"tt for the Appellant :SRl B.NARASIMHA SARMA(SR SC FOR lT) REPRESENTED BY MS.B.SAPNA REDDY Counsel for the Respondents : NONE APPEARED The Court made the following : JUDGMENT

T N'B L U P SA o Y H AND THE N'B ES IJ s IC I G o AI\IDIKO N o TA R P E 574 NDA L L JUDGMENT: (pet the Hon,bte sri Justtce p. sam Koshy) Heard Ms. Bokaro Sapna Reddy, learned Jurrior Standing on behalf of the Counsel for Income Tax Department appearing appellant 2' The instant appear unde.section 2604 of the Incrme Tax Act, 1961, has been preferred by the Revenue as the appella.t against the order dated 72.70.2012, passed by the Income Tax Appellate Tribunal, Hyderabad ,.8,, Bench, Hyderabad, in LT.A.No.9 7g/Hyd/ZOt2 for the I Assessment year 2008_09. 3' centrar Board of Direct raxes (CBDT) has issued cirt:ular ruo.g oh 2o2a datld 77'og'2024, amending the previous circurar Nro.5 of 2024 dated 15'03'2024, bv further enhancing the monetary rirrits for firing appeals by the Income Tax Department before the Income Tax Apperrate Tribunars, High courts and Supreme court as a rneasure for reducing litigation' in paragraph 2 0f the said circurar, we find that the

Page 2 of 2 monetary limit fixed for filing an appeal before the High Court is Rs.2.00 crore. 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 the appeal comes within the exception'of Circular No.5 of 2024, it would be open to the Income T?x Department to seek revival of the a ppea l. 6. As a sequel, miscellaneous applications pending if any, shall stand closed. However, there shall be no order as to costs. Sd/- K. SRINIVASA RAO JOINT REGISTRAR //TRUE COPY// CTION OFFICER I To, 1. The lncorie tax Appellate Tribunal, Hyderabad Bench '8" Hyderabad 2. One CC to SRI B. NARASIMHA SARMA, SR SC FOR lT, [OPUC] 3. Two CD CoPies PCSD/psl I

HIGH COURT DATED:2110412Q25 JUDGMENT ITTA.No.S74 of 2013 oo 1 1 JUL 2025 * . Sr--'4;,;r r t DISMISSING THE INCOME TAX TRIBUNAL APPEAL \o d rlFlr i rA

More judgments on Section 260-A

All 2,570 judgments and leading authorities on Section 260-A →

Recent GST High Court judgments

Search GST case law →