THE COMMISSIONER OF INCOME TAX (CENTRAL) vs. SR M. P.B. KUTUMBA RAO

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ITTA/645/2016HC TelanganaHBHC01047561201628 February 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 is dismissed in terms of CBDT Circular No. 9 of 2024 dated 17.09.2024. The Court noted that the tax effect in the instant appeal is well below the monetary limit of Rs. 2.00 crore fixed for filing appeals before the High Court. The reasoning is that the CBDT has issued circulars to reduce litigation by enhancing monetary limits for appeals. The operative direction is the dismissal of the appeal. The judgment also states that 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 were awarded.

What were the facts?

The Revenue, the Commissioner of Income Tax (Central), Hyderabad, is the appellant, and Sri M.P.B. Kutumba Rao is the respondent. The appeal is filed under Section 260A of the Income Tax Act, 1961, challenging an order dated December 19, 2013, passed by the Income Tax Appellate Tribunal, Hyderabad 'A' Bench, for Assessment Year 2003-04. The appeal concerns a dispute where the tax effect is stated to be well below the monetary limit prescribed by the Central Board of Direct Taxes (CBDT) 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 limits prescribed by the CBDT circulars for filing appeals. (Question of law) Contentions: Assessee: Not recorded. Revenue: The Revenue has filed the appeal, implicitly arguing for its maintainability. However, the judgment focuses on the CBDT circulars. The Revenue relies on Circular No. 9 of 2024 (amending Circular No. 5 of 2024) which enhances monetary limits for filing appeals before the High Court to Rs. 2.00 crore.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD FRIDAY, THE TWENTY EIGHTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY & THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA Between The Commissioner of lncome Tax (Central), Hyderabad. ..,Appellant And SRI M.P.B. Kutumba Rao, 8-2-2931821J-lll, Plot No. 244, Road No. 78, Jubliee Hills, Hyderabad. ...Respondent 1 I , l t l INCOME TAX TRIBUNAL APPEAL NO: 645 OF 2016 This Appeal is under section 260 A of the lncome Tax Act, '196 1, aggrieved by the orders made in Tribunal in CO No. 411H12010 (in ITA No. 740lHl2O1A), dated 19-12-2013 for A.Y. 2003-04. For the Appellant. Ms. Bokaro Sapna Reddy, learned rep. for Sri J.V. Prasad, (SC for Income Tax) For the Respondent: Sri A.V.A. Siva Kartikeya, Advocate The Court made the following: JUDGMENT

THE HON,BLE SRI JUSTICE P.SAI'T KOSHY THE HON'B],E SRI JUSTICE NARSING RAO NANDIKOIiIDA INCOME TAX TRIBUNAL APPEAL So.645 0r 2016 JUDGMENT: (pet Hotl'bLe Sn Justtc.e P.Sam KoshA) Heard Ms.Bokaro Sapna Reddy, learned Standilg Cor-rnsel for Income Tax, appearing on behalf of the appellant' 2. The instant appeal under Section 260A of lhe Incomc Ttt-x Act' 1961, has been prelcrred by the Revcnuc as ll'rc appeliant against lhe order dated 79.l12.2O73 passed by the Income Tax Appellate Tribunal' Hyderabad "A" Bench, Hyderabad, in I'T'r\'No'740i Hydi 2010 ior the Assessment Year 2003-O4- 3. Central Bo:trd of Direct Taxes (CBDT) has issued Cii-cular No'9 of 2024 dated 17.O9.2O24, amending the previous Circular No'5 ol 2024 dated 15.03.2 O21, by further enhancing thc monetary limits lor filing appeals by the Income Tax Department befrrre the lncome Tax Appellate Tribunals, High Courts and Supreme Court as a measure for reducinglitigaticln'lnparagraph2ofthesaidCircular.wel.lndthat the monetary limit hxed for hling an appeal before the High Court is Rs.2.OO crore. AND i I

PaBe 2 of 3 4 ln the instant appear, tax effect is well bclow- the monetarv rimit. 5. Therefore, the appeal hled by the Revenue is dismissed in terms of thc aforesaid cirt;urar N..9 of 2024 dated rr.og.2o24. However, if the appeal comes viithin the exception of Circular No.S of 2024, it would be open to the Income Tax Department to seek revival of the appe"rl. No cosls. 6 As zr sequcl, miscellaneous applications pending if any, shall stanri close c1 SD/- K. SRINIVASA RAO JOINT REGISTRAF] //TRUE COPY// SECTION OFFICER To, 1 2 1 4 The lncome Tax Appellate Tribunal, Bench 'A' Hyderabad' One CC to Sri J.V. i'rasad, (SC for lncome Tax) Advocate IOPUC] One CC to Sri A.V A Siva Kartikeya. Advocate [OPUC] Two CD Copies YP \

HIGH COURT DArED.28t2t2025 JUDGIVENT ITTA.No.645 of 2016 APPEAL IS DISIVISSED, NO COSTS 5 Izr ( {' Jo ) '9 .. j 27Jul.t 206 Q^l {' Og.SPATCHEo G*?('a Ww ,/./ Y,+ )

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