Commissioner of Incoma Tax (TDS), vs. M/s. Jyothi Chits AND Finance,

ITTA/581/2012HC TelanganaHBHC01041055201213 February 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The primary reason for dismissal was that the tax effect in the instant appeal was well below the monetary limit of Rs. 2.00 crore for filing appeals before the High Court, as stipulated by CBDT Circular No. 9 of 2024, which amended Circular No. 5 of 2024. The Court held that the appeal was not maintainable based on this circular. However, the Court provided a liberty to the Income Tax Department to seek revival of the appeal if it falls within any exception provided in Circular No. 5 of 2024. No costs were awarded. The operative direction was the dismissal of the appeal.

What were the facts?

The Revenue, Commissioner of Income Tax (TDS), Hyderabad, filed an appeal before the High Court against an order dated 21.10.2011 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. The ITAT's order pertained to Assessment Year 2005-06 and was made in relation to an appeal against the order of the Commissioner of Income Tax (Appeals) II, Hyderabad, which in turn was against the order of the Income Tax Officer, Ward-14(3), Hyderabad. The respondent in this appeal is M/s. Jyothi Chits and Finance. 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 by CBDT Circular No. 9 of 2024 for filing appeals before the High Court.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court given the monetary limit prescribed by the CBDT for filing appeals. (Question of law, turning on CBDT Circular No. 9 of 2024). Assessee's Contention: The judgment does not record any specific contentions made by the assessee, M/s. Jyothi Chits and Finance. Revenue's Contention: The Revenue, through its Standing Counsel, presented the appeal. The judgment does not detail the specific arguments made by the Revenue regarding the merits of the ITAT's order. However, the Revenue's appeal was considered in light of the CBDT circular.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY, THE THIRTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEAL NO: 581 OF 2012 Income tax Tribunal Appeal under Section 260-4 of the lncome tax Act, '1961, against the Order of the lncome Tax Appellate Tribunal, Hyderabad Bench B, Hyderabad in ITA No.530,531,532,5331H12011 for Assessment Year 2004-05,2005- 06,2006-07,2007-08 dated 21 .10.2011, preferred against the Order of the Commissioner of lncome Tax (Appeals) ll, Hyderabad dated 27.O1.20'l 1 in Appeal No.0028/ClT(A)-lll2009-10, preferred against the Order of the lncome Tax Officer, Ward-'14(3), Hyderabad dated 23,03.2009 in TAN No.HYDJ00436C/05-06. Between: Commissioner of lncome Tax (TDS),, Hyderabad ...Appellant M/s. Jyothi Chits and Finance, Shops 6 to B, 2nd Floor, Hydri Complex, Ranigunj, Secunderabad. ...Respondent l.A. NO: 1 OF 2012 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to dispense with the filing of the original Orders of the Tribunal in ITA No. 531lHydl2O11 daled 21.1O.20'1 1 in the above ITTA. Counsel for the Appellant : Mr. A. Rama Krishna Reddy Standing Counsel for lncome Tax. Counsel for the Respondent : Dr. C P Ramaswami I AND The Court delivered the following:

I T THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSIN G RAO NANDIKONDA INCOME] ']'AX TRIBUNAL APPEAL No.581 Ot 2Ol2 JUDGMENT'. Urct i) 'n ttp Sn Justce p.Satn Koshs) Heard Mr.A.Rama Krishna Reddy, learned Standing Counsel for Income Tax, appearing on behalf of the appellant. 2. The instant appeal under Section 260A of the Income Tax Act, 1961, has been preferred by the Revenue as the apperlant against the order dated 21 .1O.2O11 passed bi, the Income Tax Appellate Tribunal, Hyderabad "8" Bench, Hyderabad, in LT.A.No.53l/H5,dl2OIl for the Assessrrlent Year 2005-06. I 3. central Boarcl ol Direct Taxes (cBDT) has issued circular No.9 of 2024 dated 77.oq.2024, amending the previous circular No.5 of 2024 dated 15.03.2024, by further enhancing the monetarJr limits for liling appeals by the Income Tax Department before the Income Tax Appellate Tribunals, High courts and supreme court as a measure for reducing litigation. In paragraph 2 of the said circular, we find that the monetary limit lixed for filing an appeal before the High court is Rs.2.O0 crore. I I I I I

Page 2 of 3 4. In the instant appeal, tax effect is well below the monetary limit' 5. Therefore, the appeal Iiled 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 Tax Department to seek revival of the appeal. No costs. 6 As a sequel, miscellaneous applications pending if any, shall stand closed. SRINIVASA RAO sd/- K. JO NT REGISTRAR CTION OFFICER To 1. The lncome Tax Appellate Tribunal' Hyderabad.Bench.B' HVderaba{' 2. The Commissioner of f ntorn"i" (Appeals) ll' Hyderabad l ; il; i;;; rax officer, Ward-14(3)' Hvderabad' .. 4 one cc to Mr. n. nama iirisfrn" n6oOV Standing Counsel for lncome 5. 6. DL/gh Tax [OPUC] One'CC to Sri. C P Ramaswami' Two CD CoPies Advocate tOPUCI ITRUE COPY// w

HIGH COURT DAf ED:1310212025 JUDGMENT lTTA.No.581 oI 2011t DISMISSING THE APPEAL 2 1 r{Ari 2025 > 6) \' al soarcH -*9 @ !

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