THE COMMISSIONER OF INCOME-TAX-I, HYDERABAD vs. COROMANDEL INTERNATIONAL LIMITED, SECUNDERABAD

ITTA/99/2016HC TelanganaHBHC01066877201607 April 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 was dismissed in terms of CBDT Circular No. 9 of 2024 dated 17.09.2024. The reasoning was that the tax effect in the instant appeal was well below the monetary limit of Rs. 2.00 crore fixed for filing appeals before the High Court. The Court stated that if the appeal came within the exceptions of Circular No. 5 of 2024, it would be open for the Income Tax Department to seek revival of the appeal. No costs were awarded. The operative direction was the dismissal of the appeal. No issues were expressly left undecided, as the appeal was disposed of on a procedural ground related to monetary limits.

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 21.11.2014 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'B', for Assessment Year 2008-09. The respondent is Coromandel International Limited. The appeal was filed by the Income Tax Department. 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 reduce litigation by enhancing monetary limits for filing appeals. The circular fixed the monetary limit for filing appeals before the High Court 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, considering the monetary limits prescribed by the CBDT for filing appeals. Assessee's Contentions: The assessee (Revenue) did not explicitly present arguments on the merits of the case. The appeal was decided based on the monetary limits stipulated by the CBDT circulars. Revenue's Contentions: The Revenue, as the appellant, relied on the fact that the appeal was filed under Section 260A of the Income Tax Act, 1961. However, the primary basis for the dismissal of the appeal was the monetary limit set by the CBDT. The judgment does not record specific arguments made by the Revenue regarding the merits of the case or any exceptions to the circular.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD MONDAY, THE SEVENTH DAY OF APRIL T\ /O THOUSAND AND nVENTY FIVE PRESENT THE HON'BLE SRI JUSTICE P,SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA l.T.T.A.No: 99 OF 2016 Appeal under section 260A of the lncome Tax Act, against the order in l.T.A.No.'l '157lH 12014 daled 21-11-2O14 for Assessment Year 2008-09 on the file of the lncome-tax Appellate Tribunal, Hyderabad Bench B, Hyderabad. Between: The Commissioner of lncome-Tax-1, Hyderabad. ...Appellant AND Coromandel lnternational Limited, Coromandel House, 1-2-10, S.P.Road, Secunderabad. ...Respondent Counsel for the Appellant: Ms. B. Sapna Reddy (SC FOR INCOME TAX) Counsel for the Respondent: Sri A.V. Raghu Ram The Court delivered the following: JUDGMENT

THE HON'BLE SRI JUSTICE P.SAU KOSHY AITD THE HON'BLE SRI JUSTICE NARSIItG RAO NANDIKONDA INCOME TA)( TRIBUNAL APPEAL Ito.99 OF 2O16 JUDGMEIYT: (per Hoa'ble Si Justi@ P.Satu Koshy) Heard Ms.B.Sapna Reddy, learned Standing Counsel for Income Tax, appearing on behalf of the appellant. 2. The instant appeal under Section 26OA of the Income Tax Act, 1961, has been preferred by the Revenue as tJle appellant against the order dated 2l.lt.2Ol4 passed by the Income Tax Appellate Tribunal, Hyderabad "B" Bench, Hyderabad, in I.T.A'No.1157 lHydl2ola for the Assessment Year 2OO8-09. 3. Central Board of Direct Taxes (CBDT) has issued Circular No.9 ol' 2024 dated. 17.O9.2024, amending the previous Circular No.5 of 2O2'{ dated 15.03.2O24, by further enhancing the monetar5r limits for liling appeals by the Income Tax Department before the lncome Ta-x Appeltate Tribunals, High Courts and Supreme Court as a measure for reducing titigation. In paragraph 2 of the said Circular, we find that the monetary limit hxed for filing an appeal before the High Court is Rs.2.0O crore.

Pag€ 2 of 3 4. In the instant appeal, tax effect is well belorv the monetar5r 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.5 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// SECTI To, '1. The lncome{ax Appellate Tribunal, Hyderabad Bench B, Hyderabad 2 One CC to Ms. B. Sapna Reddy (SC FOR INCOME TAX)[OPUC] 3. One CC to Sri A.V. Raghu Ram, Advocate {OPUCI 4 Two CD Copies KanVpsl li/.-- oft orrrcen

HIGH COURT DATED:0710412025 JUDGMENT ITTA.No.99 of 2016 DISMISSING OF THE APPEAL o o 11 luL 2u25 .,, l 'J,c. {I ( ( .,; ) * ( lrircr-irn l I i !i i iI I i I I i I I i t ! i i I i l1 I I ilj I

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