Commissioner of Wealth Tax VI, vs. Sb. Rasheedunnisa Begum

WTA/1/2008HC TelanganaHBHC01034825200813 February 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 not maintainable. The Court referred to CBDT Circular No. 9 of 2024, which amended Circular No. 5 of 2024, by enhancing 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 noted that in the instant appeal, the tax effect was well below this prescribed monetary limit. Consequently, the appeal filed by the Revenue was dismissed in terms of the aforesaid Circular No. 9 of 2024. The Court also stated that if the appeal falls within any exception of Circular No. 5 of 2024, the Income Tax Department could seek revival of the appeal. No costs were awarded. Any pending miscellaneous applications were also closed.

What were the facts?

The Revenue, Commissioner of Wealth Tax-VI, Hyderabad, filed an appeal before the High Court of Telangana at Hyderabad against an order dated 12.12.2002 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'A'. This ITAT order was in relation to Wealth Tax Appeal No. 422/Hyd/1997 for the Assessment Year 1990-91. The appeal before the High Court arose from an order of the Commissioner of Income Tax (Appeals)-I, Hyderabad, which in turn was preferred against an order of the Assistant Commissioner of Wealth Tax, Circle 1(3), Hyderabad. The respondent is Sb. Rasheedunnisa Begum, Trustees of HEH Nizams Jewellery Trust. The High Court heard the Standing Counsel for Income Tax for the appellant, but no one appeared for the respondent.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court in light of the monetary limits prescribed by CBDT Circular No. 9 of 2024 dated 17.09.2024, amending Circular No. 5 of 2024 dated 15.03.2024. Assessee's Contention: Not recorded. Revenue's Contention: The Revenue, through its Standing Counsel, presented the appeal. The judgment does not explicitly record the Revenue's arguments regarding the maintainability of the appeal, but it does refer to the CBDT circulars which are the basis for the dismissal.

Which sections of the Income-tax Act were involved?

27(A)

AI-generated summary — verify with the full judgment below

134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY, THE THIRTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA WEALTH TAX APPEAL NO: 1 OF 2008 Appeal under Section 27 (A) ot the Wealth Tax Act , 1957 arising out of the Order of the lncome Tax Appellate Tribunal, Hyderabad Bench "A" Hyderabad made in W.T.A.No.422l\ydl1997 dated 12-12-2002 preferred against the Order of the Commissioner of lncome tax (Appeals)-l Hyderabad in Appeal No. WTA NO247iAC1(3)/CWT(A)1i95-96 dated 0'l-08-1997 preferred against the order of the Assistant Commissioner of Wealth Tax , Circle '1 (3), Hyderabad made in pAN/GlR R-7 22 dated 30-03- 1 995. Between: Commissioner of Wealth tax-Vl, Hyderabad ...Appella nt AND Sb. Rasheedunnisa Begum, Trustees of HEH Nizams Jewellery Trust, 22-3-660, Purani Haveli, Hyderabad. Counsel for the Appellant: Ms. Bokaro Sapna Reddy, Standing Counsel for lncome Tax Counsel for the Respondent: None Appeared The Court delivered the following: JUDGMENT ...Respondent

(l I , I THE HON'BLE SRI JUSTICE P.SAM KOSHY THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA WEALTH TAX APPEAL No.1 OF 2OO8 JUDGMENT: lIEr Hotl'bb Sn Jrct P P.So.m Koshg) Heard Ms. Bokaro Sapna Reddy, learned Standing Counsel for Income Tax, appearing on behalf of the appellant. 2. The instant appeal under 27 (Al ot the Wealth Tax Act, 1957, has been preferred by the Revenue as the appellant against the order dated 12.12.20O2 passed by the Income Tax Appeiiate Tribunal, Hyderabad "A" Bench, Hyderabad, in W.T.A.No.422/Hydl1997 for the Assessment Year 1990-9 1 . 3. Central Board of Direct Taxes (CBDT) has issued Circular No.9 of 2024 dated 17.O9.2024, amending the previous Circular No.5 of 2O24 dated 15.O3.2024, by further enhancing the monetary lirnits fo1 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 paragr:aph 2 of th.e said Circular, we find that the monetar5r limit fixed for frling an appeal before the High Court is Rs.2.OO crore. AND

Page 2 of 3 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.O9.2O24- 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 sequei, miscellaneous applications pending if any, shall stand ciosed. //TRUE COPY' Sd/- K. SRINIVASA RAO JOINT REGISTRAR ECTION OFFICER To, kanr/PSl- 1 The lncome Tax Appellate Tribunal, Hyderabad Bench ,,A,, Hyderabad 2, The Commissioner of lncome tax (Appeals)-l Hyderabad. 3. The Assistant Commissioner of Wealth Tax , Circle 1 (3), Hyderabad 4. One CC to Ms. Bokaro Sapna Reddy, Standing Counsel for lncome Tax loPUCl 5. Two CD Copies 4y I

HIGH COURT DATED:1AA212025 JUDGMENT WTA.No.1 of 2008 DISMISSING OF THE APPEAT t tBE s tArC 11 ,'Pi 7W ,J * ) ^6 @

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