Commissioner of Income Tax (TDS) vs. M/s. Suman Chit Fund (P) Ltd.,

ITTA/577/2012HC TelanganaHBHC01026047201210 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 not maintainable. The reasoning was based on the CBDT Circular No. 9 of 2024, which enhanced the monetary limits for filing appeals by the Income Tax Department before the High Courts. The circular fixed the monetary limit for appeals before the High Court at Rs. 2.00 crore. Since the tax effect in the present appeal was found to be well below this prescribed limit, the appeal was dismissed. The court also noted that if the appeal fell 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 order as to costs was made.

What were the facts?

The Revenue, represented by the Commissioner of Income Tax (TDS), Hyderabad, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 10.10.2011 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'A'. The appeal pertained to the Assessment Year 2007-08 and was filed against M/s. Suman Chit Funds (P) Ltd. 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 by the Income Tax Department. The circular stipulated a monetary limit of Rs. 2.00 crore for appeals before the High Court. The tax effect in the instant appeal was stated to be well below this monetary limit.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the monetary limits prescribed by the CBDT Circulars for filing appeals before the High Court? Assessee's Contention: The judgment does not record any specific contentions from the assessee. The appeal was dismissed based on the Revenue's own submission regarding the tax effect and the CBDT circular. Revenue's Contention: The Revenue, through its counsel, acknowledged 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, as per CBDT Circular No. 9 of 2024.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

rN rHE HIGH couRr FORTEE^S"tI.J= oF TELANGANA r Hu Rs DAY' r|lF, It^YJ-1H.Rtt ?t'#t TWO THOUSANI .34471 Tax Act,1 961 2011 for the llate Tribunal, THE HONOURABLE SRI J-USTICE P'SAM KOSHY THE HONOURABLE SRI TUSIilCDT'TNNSING RAO NANDIKONDA PRESENT PEAL NO: 577 oF2012 rncomeraxrribunartr-?i:iliit:',1!"i"'"i+"t-tl.?J?",^tw i'"l'j':l#;, ?:',?'rteti-ozd[X";;'riie o1 t'e rncome rax Appe fuili]u; b"nch'A, HYderabad' rNCOME TAX TRIBUNALAP Between: AND Counsel for the ResPondent: - - - - The Court made the following: JUDGMENT The Commissioner of lncome Tax (TDS)' Hyderabad ...ApPetlant M/s. Suman Chit Funds (P) Ltd " 5-4-36/1' J N Road' Abids' Hyderabad' ...ResPondent Counsel for the Appellant: Ms J SUNITHA (JUNIOR SC FOR INCOME TAX DEPT) I I I l

THE IIONOURABLE S THE HONOUROU'" .,TI" STICE P.SAM KOSHY *^*s,r#$If E NARS rNG RAo TTTA No.577 OF 2012 JUDGMENT (per IIon'ble Sri Justice p.Sant Koshy) Heard Ms. J.Sunitha leamed Junior Standing Counsel fbr the Income Tax Department for the appellant. perused the record. 2. This appeal under Section 260A of the Incorne Tax Act, 1961, has been preferred by the Revenue as tlie appellant against the order dated 10. l0.20ll passed by the Income.Iax Appellate Tribunal, Hyderabad Bench ,A,, Hyderabad, in I.T.A.No.605/Hyd/20II for rhe Assessment year 2007_08. 3. Central Board of Direct faxes (CBDI) has issued Circular No.9 of 2024 dated 17.0g.2024, amending the previous Circular No.5 of 2024dated, 15.0j.2024, by furrher enhancing the monetary lirnits for filing appeals by the Income Tax Department belore the Incorne Tax Appellate Tribunals, High Courts and Supreme Courl aS a measure for reducing litigation. In paragraph 2 of thc said

7 Circular, we hnd that the monetary limit f,rxed 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 5. Therefore, the appeal filed by the Depaftment 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, itwould be open to the lncome Tax Department to seek revival of the aPPeal There shall be no order as to costs' 6. Consequently, miscellaneous petitions pending' if any' shall stand closed. /- B. SATYAVATT'!! OINT REGISTRAR 1imit. Two CD CoPies //TRUE COPY// SD SECTION OFFICER To . The lncome Tax Appellate Tribunal' Hyderabad Bench 'A" Hvderabad' . One CC to tvls.J.Sunitha' i""i"t S'" *j' ln"o-" Tax DeOt)' Advocate [OPUCI . ffi A i" sii k.n,ii Reddv, senior sc' Advocate [oPUC] 1. 2 3 4 ABK :.: ll

H]GH COURT DATED: lOtO4tZOzS JUDGMENT ITTA.No.577 ot 2012 DISMISSING THE ITTA WITHOUT COSTS i \" D 0 b 1 ( 1D

Recent GST High Court judgments

Search GST case law →