THE COMMISSIONER OF INCOME TAX I, HYD vs. M/S VISION 2K INC., HYD

ITTA/9/2016HC TelanganaHBHC01055769201624 March 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, as stipulated by CBDT Circular No. 9 of 2024 for filing appeals before the High Court. The Court relied on this circular as a measure for reducing litigation. The judgment stated that if the appeal fell within any exceptions provided in Circular No. 5 of 2024, the Income Tax Department could seek revival of the appeal. No order as to costs was made. Any pending miscellaneous petitions were also closed.

What were the facts?

The Revenue, as the appellant, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 20.08.2014 passed by the Income-Tax Appellate Tribunal, Hyderabad Bench 'B', for Assessment Year 2010-11. The assessee is M/s Vision 2K+ INC. The appeal was filed by the Commissioner of Income Tax I, Hyderabad. The High Court noted that 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 to reduce litigation. The monetary limit for filing an appeal before the High Court was fixed at Rs. 2.00 crore. 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 before the High Court given the monetary limit prescribed by CBDT Circular No. 9 of 2024. (Question of law) Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The appeal was decided based on the Revenue's own submission regarding the tax effect and the applicability of the CBDT circular. Revenue's Contention: The Revenue, by filing the appeal, implicitly contended that the matter warranted High Court intervention. However, the judgment highlights that the tax effect was well below the monetary limit stipulated in CBDT Circular No. 9 of 2024, which was the basis for the dismissal.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

a34/-7 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD MONDAY, THE TWENW FOURTH DAY OF MARCH TWO THOUSAND AND TWENry F|VE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA ITTA No: 9 of 2016 Appeal filed under section 2604 of the lncome Tax Act, 1961 against the order dated 20-08-2014 in l.T.A. No.6481H12014 for A.Y.201 0- 1 1 on the file of the lncome-Tax Appellate Tribunal, Hyderabad Bench 'B' Hyderabad. Between: The Commissioner of lncome Tax l, Hyderabad. ...AppellanUAppellant AND M/s Vision 2K+ lNC., 6-2-9291A, Beside Zee Telugu Channel, Khairatabad, Hyderabad. ... RespondenURespondent Counsel for the Appellant: Ms. B. Sapna Reddy, Junior Standing Counsel representing Mr. J.V. Prasad (Senior SC FOR INCOME TAX) Counsel for the Respondent: Mr. A.V.A. Siva Kartikeya The Court delivered the following: JUDGMENT

THE HONOURABLE SRIJUSTICE P.SAM XOSHY AND THE HONOURABLE SRIJUSTICE NARSINIG RAO NANDIKOIYDA ITTA No.9 OF 2016 JUDGMENT (per Hon'ble Sri Justice P.Sam Koshy) Heard Ms. B.Sapna Reddy, leamed Junior Standing Counsel representing Mr. J.V.Prasad, leamed Senior Standing Counsel for the Income Tax Department for the appellrnt. Perused the record. 2. This appeal under Section 260,4. of the Inco rre Tax Act, 1961, has been preferred by the Revenue as the appellant against the order dated 20.08.2014 passed by the Income 'fax Appellate -I ribunal, Hyderabad Bench 'B', H'rderabad, in l.T.A.No.648/Hydl2Ol4 for the Assessment Year 201()- I l. l. Central Board of Direct Taxes (CBDT) has issued Circular No.9 of 2024 dated 17.09.2024, amending the previous Circular No.5 ol'2024 dated 15.03.2024, by further enhancing the monetary limits for filing appeats by the Income Tax Department belore the Income Tax Appetlate Tribunals, High Courts and Strpreme Court

2 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.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 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. Sd/. K. SRINIVASA RAO OINT REGISTRAR //TRUE COPY// ECTION OFFICER 1. The lncome-Tax Appellate Tribunal, Hyderabad Be ch'B'Hyderabad 2. One CC to Mr. J.V. Prasad, Senior SC FOR INCOME TAXIOPUCI 3. One CC to Mr. A.V.A. Siva Kartikeya, Advocate IOPUC] 4 Two CD Copies Kanr/PS L To,

t , I HIGH COURT DATED:2410312025 JUDGMENT lTTA.No.9 of 2016 DISMISSING OF THE APPEAL I o" ( /Jco [ 1 lut 2025 ( C t SPATCHEo ,lbl 6lad o

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