Principal Commissioner of Income Tax-1 vs. M/S.Sri Sri GruhaNirman India Pvt Ltd.

ITTA/67/2024HC TelanganaHBHC01036607202330 January 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 Court noted that the Central Board of Direct Taxes (CBDT) had issued Circular No. 9 of 2024, dated 17.09.2024, which further enhanced the monetary limits for filing appeals by the Income Tax Department. Specifically, the circular fixed the monetary limit for filing an appeal before the High Court at Rs. 2.00 crore. The Court observed that the tax effect in the instant appeal was well below this prescribed monetary limit. Therefore, in terms of the aforesaid Circular No. 9 of 2024, the appeal filed by the Department was dismissed. The Court also stated that if the appeal fell within any exception of Circular No. 5 of 2024, it would be open to the Income Tax Department to seek revival of the appeal. No order as to costs was made. Miscellaneous petitions pending were also closed.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-1, Hyderabad (Revenue) against an order dated 28.02.2023 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'A'. The ITAT's order pertained to Income Tax Appeal No. 94/Hyd/2019 for the Assessment Year 2015-2016. The assessee is M/s. Sri Sri GruhaNirman India Pvt Ltd. The appeal before the High Court was preferred against the order of the Commissioner of Income Tax (Appeals) - 12, Hyderabad, dated 19.11.2018. The present appeal before the High Court is an Income Tax Tribunal Appeal (ITTA) No. 67 of 2024.

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 Central Board of Direct Taxes (CBDT) for filing appeals. The Revenue, represented by learned Senior Standing Counsel Mr. J.V. Prasad, did not argue the merits of the case. The primary submission was based on the applicability of CBDT Circular No. 9 of 2024, which amended Circular No. 5 of 2024, to enhance monetary limits for filing appeals. The Revenue contended that the tax effect in the instant appeal was below the enhanced monetary limit of Rs. 2.00 crore for appeals before the High Court. The Respondent (assessee) was represented by Mr. Dundu Manmohan. No specific arguments were recorded for the respondent in the provided text.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

4 3447 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY, THE THIRTIETH DAY OF JANUARY 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:67 OF 2024 Appeal under section 2604, of the lncome Tax Act, 1961 against the order daled. 28-02-2023 passed in l.T.A.No.94/Hyd/2019, for Assessment Year 2015- 2016 on the file of the Court of the lncome Tax Appellate Tribunal, Hyderabad Bench "A", Hyderabad preferred against the Order dated 19.11.2018 passed in PAN/GIR No. AALCS2721G, on the file of the Commissioner of lncome Tax (Appeals) - 12, Hyderabad. Between: Principal Commissioner of lncome Tax-1, Hyderabad ...APPELLANT AND M/s. Sri Sri GruhaNirman lndia Pvt Ltd., Sri Sri House, H.No.16-2-733/4/2, R B Colony, Dilshuknagar, Hyderabad ...RESPONDENT Counsel for the Appellant: SRl. J V PRASAD (SC FOR INCOME TAX) Counsel for the Respondent: SRl. DUNDU MANMOHAN The Court delivered the following: JUDGMENT l ! I I

n -7 I I THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HOINOURABLE SRIJUSTICE NARSING R,AO NANDIKONDA ITTA No.67 OF 2024 JUDGMENT (per Hon'ble Sri Justice P.Sam Koshy) Heard 1t4r. J.V.Prasad, leamed Senior Standing Cotrnsel for the Income I'ax Department for the appellant. Perused the record. 2. This eLppeal under Section 260,4. of the Income l'ax Act, I 96 I , has :br:en preferred by the Revenue as the appellant against the o"der d,ated 28.02.2023 passed by the Income Tax Appellate llribunal, Hyderabad Bench 'A', Hyderabad, ln I.T.A.No.94lH yd/2019 for the Assessment Year 2015-16 3. Central Board of Direct Taxes (CBDT) has issued Circular No.9 of '2024 dated 17.09.2024, amending the previous Circular No.5 of 2024.,lated 15.03.2024,by further enhancing the rnonetary limits for filing appeals by the Income Tax Department before the I Income Tax Appellate Tribunals, High Courts and Suprerne Court as a measure for reducing litigation. In paragraph 2 of the said I

2 Circular, we hnd that the 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 Department 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. There shall be no order as to costs. 6. Consequently, miscellaneous petitions pending, if any, shall stand closed. //TRUE COPY// Sd/- M. VIJAYA BHASKER JOINT REGISTRAR ECTION OFFIGER To Prlgh 1 . The Commissioner of lncome Tax (Appeals) -12'. Hyderabad' i. +ii; i;iliri App"rrri. iriounat,'uvoelabad. B-ench "A" Hvdellpa!' 5. o;;'cc 6-snr. L V'pnndno, s-ta'tl"g-C.ounsel for lncome Tax [oPUC] ; il; dc i" sii. ouNDU MANMoHAN, Advocate [oPUC] 5. Two CD CoPies ** ,,.\

HIGH COURT DATED: 3010112025 JUDGMENT lTTA.No.67 ol'2024 DISMISSING T'HE I.T.T.A .'i'fA r .,'3 6 7 .,\ l! (,t' 4.. c +'., ."<: *-y'' ,*-- .) I [ 5 iiAB 2025 '\:'-t .,',".-. \. !".: \l! -.\: rn-l'{-.1 vr -.---a

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