THE COMMISSIONER OF INCOME TAX(CENTRAL) vs. M/S SMS PHARMACEUTICALS

ITTA/97/2015HC TelanganaHBHC01037253201510 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 decision was based on Circular No. 9 of 2024 dated 17.09.2024, issued by the CBDT, which enhanced the monetary limits for filing appeals by the Income Tax Department. The Circular stipulates a monetary limit of Rs. 2.00 crore for filing appeals before the High Court. In the present case, the tax effect was found to be well below this prescribed monetary limit. The court noted that if the appeal falls within any exception provided in Circular No. 5 of 2024, the Income Tax Department would be at liberty to seek revival of the appeal. No costs were awarded.

What were the facts?

This case involves an appeal filed by the Commissioner of Income Tax (Central), Hyderabad, against an order dated 26.02.2014 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. The appeal pertains to the assessment year 2003-04 and concerns M/s SMS Pharmaceuticals as the respondent. The High Court was hearing the appeal under Section 260A of the Income Tax Act, 1961. The Revenue's appeal was filed against the ITAT's decision.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the monetary limits prescribed by the Central Board of Direct Taxes (CBDT) for filing appeals before the High Court? Assessee's Contention: The judgment does not record any specific contentions from the assessee regarding the merits of the case. The entire decision hinges on the procedural aspect of the monetary limits for filing appeals. Revenue's Contention: The Revenue, as the appellant, had filed the appeal before the High Court. The judgment does not explicitly detail the Revenue's arguments on the merits but implies their intention to pursue the appeal. However, the decision is based on the application of CBDT Circulars regarding monetary limits.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Appeal filed Under Section 260 A of the lncome Tax Act, .lg6.l aggrieved by the order dated 26-02-2014 in ITA No. SS4lHt2OOl , for the assessment year 2003-04 on the file of the lncome Tax Appellate Tribunal, Hyderabad Bench "B", Hyderabad IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD MONDAY ,THE TENTH DAY OF MARCH TWO THOUSAND AND TWENTY FIVE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIB UNAL APPEAL NO: 97 OF 2015 Between: The Commissioner of Income Tax ( Central ) Hyderabad ..APPELLANT/ Respondent AND M/s SMS Pharmaceuticals, 4'17, Neelgiri Aditya Enclave Ameerpet, Hyderabad. ...RESPONDENT/ Appellant Counsel for the Appellant: SRl. J. V. PRASAD (SC FOR INCOME TAX) Counsel for the Respondent: SRI Y. RATNAKAR The Court delivered the following Judgment: I

THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTTCE NARSING RAO NANDIKONDA Income Tax Tribunal Appeal No.97 of 2O15 JUDGMENT', ber Hon'bLe Sri Justr'ce Psam Koslac) Heard Mr. J.V. Prasad, learned Senior Standing Counsel for Income Tax, appearing on behalf of the appellart. 2. The instant appeal under Section 260A of the Income Tax Act, 1961, has been preferred by the Revenue as the appellant against the order dated 26.O2.2OI4 passed by the Income Tax Appellate Tribunal,.. Hyderabad Bench-B, at Hyderabad, in I.T.A.No.554 lHl2OOT for the Assessment Year 2003-04. 3. The Central Board of Direct Taxes (CBDT) has issued a Circular, viz., Circular No.9 of 2024 dated 17.O9.2O24, amending the previous Circular No.5 of 2024 dated 15.03.2024, by further enhancing the monetar5z limits for frling appeals by the Income Tax Department before the Income Tax Appellate Tribuna-ls, High Courts and Supreme Court as a measure for reducing litigation. In paragraph no.2 of the said Circular, we find that the monetar5r limit fixed for frling an appeal before the High Court is Rs.2.OO crore. ',. (-

Page 2 of 2 4- In the instant appeal, tax effect is well below the monetary limit. 5. Therefore, the appeal filed 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.S 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. SD/- K. SRINIVASA RAO JOINT REGISTRAR //TRUE COPY// SECTION OFFICER To, 1. The lncome Tax Appellate Tribunal, Hyderabad Bench 'B' Hyderabad z Oi" CC to SRl. J. V. PRASAD (SC FOR INCOME TAX), [OPUC] 3. One CC to SRl. Y. RATNAKAR Advocate IOPUC] 4. Two CD CoPies kul/gh\q-

\ ll * ,J -) u i I ' HIGH COURT DATED:10/03/2025 JUDGMENT ITTA.No.97 ot 2015 DISMISSING TI]E ITTA WTTHOIJ'I COSTS ( 2 6 irAY 2025 i /..- A}T (-) o ") arO b- tr" k"'

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