Commissioner of Income Tax-II, vs. M/s. Sri Kailash Sugar Chemicals Ltd.,

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ITTA/74/2011HC TelanganaHBHC01065068201125 January 2023Bench: N.TUKARAMJI,UJJAL BHUYAN3 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.17 of 2019, dated 08.08.2019, which amended Circular No.3 of 2018 and enhanced the monetary limits for filing appeals. The circular stipulated that the monetary limit for filing an appeal before the High Court is Rs.1.00 crore. Since the tax effect in the present appeal was Rs.36,39,805.00, which is well below this limit, the appeal was dismissed in terms of the circular. The Court also noted that if the appeal fell within any exceptions under paragraph 10 of Circular No.3 of 2018, the Revenue could seek revival of the appeal.

What were the facts?

The Revenue (Income Tax Department) filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 30.04.2008 passed by the Income Tax Appellate Tribunal, Hyderabad Bench ‘A’. The appeal pertained to the block period 01.04.1986 to 19.02.1997. The disputed tax effect was Rs.36,39,805.00. The learned Standing Counsel for the Revenue submitted that this amount was below the monetary limit prescribed by the Central Board of Direct Taxes (CBDT) for filing appeals.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, considering the monetary limit prescribed by the CBDT for filing appeals? (Question of law, turning on the interpretation and applicability of CBDT Circulars). Contentions: Assessee: Not recorded. Revenue: The disputed tax effect of Rs.36,39,805.00 is below the monetary limit for filing appeals as per CBDT Circulars.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

THE HON’BLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HON’BLE SRI JUSTICE N. TUKARAMJI

I.T.T.A.No.74 of 2011

JUDGMENT: (Per the Hon’ble the Chief Justice Ujjal Bhuyan)

Heard Ms. K.Mamata Choudary, learned Standing Counsel for Income Tax Department for the appellant and Ms. Harshini, learned counsel for the respondent.

2.

This appeal has been filed by the revenue under Section 260A of the Income Tax Act, 1961, against the order dated 30.04.2008 passed by the Income Tax Appellate Tribunal, Hyderabad Bench ‘A’, Hyderabad (Tribunal), in IT (SS) A No.7/Hyd/2000 for the block period 01.04.1986 to 19.02.1997.

3.

Learned Standing Counsel for the appellant fairly submits that the disputed tax effect is Rs.36,39,805.00, which is below the limit prescribed by the Central Board of Direct Taxes (CBDT).

4.

We find that Central Board of Direct Taxes (CBDT) has issued Circular No.17 of 2019, dated 08.08.2019, amending the previous Circular No.3 of 2018, dated 11.07.2018, by further enhancing the monetary limits for filing 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 fixed for filing an appeal before the High Court is Rs.1.00 crore.

5.

In the instant appeal, tax effect is of Rs.36,39,805.00, which is well below the monetary limit.

6.

Therefore, the appeal filed by the Department is dismissed in terms of the aforesaid Circular No.17 of 2019, dated 08.08.2019. However, if the appeal comes within the exception under paragraph 10 of Circular No.3 of 2018, it would be open to the Income Tax Department to seek revival of the appeal.

Miscellaneous applications pending, if any, shall stand closed. However, there shall be no order as to costs.

______________________________________ UJJAL BHUYAN, CJ

______________________________________ N. TUKARAMJI, J 25.01.2023 vs

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