THE COMMISSIONER OF INCOME TAX-I, HYDERABAD. vs. M/S ANIES VAIBHAV AGRICULTURAL PROPERTIES PRIVATE LIMITED,

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WTA/1/2012HC TelanganaHBHC01019174201213 February 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the Central Board of Direct Taxes (CBDT) has issued Circular No. 9 of 2024 dated 17.09.2024, which amended Circular No. 5 of 2024 dated 15.03.2024, 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 to reduce litigation. The monetary limit for filing an appeal before the High Court was fixed at Rs. 2.00 crore. In the instant appeal, the tax effect was well below this prescribed monetary limit. Therefore, the appeal filed by the Revenue was dismissed on this ground. The Court also noted 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.

What were the facts?

The Commissioner of Income Tax-I, Hyderabad (Revenue) filed an appeal before the High Court of Telangana at Hyderabad against an order dated 13.10.2006 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. This ITAT order was in relation to Wealth Tax Appeal No. 45/Hyd/2004 for the Assessment Year 1998-99. The ITAT's order was preferred against the order of the Commissioner of Income Tax (Appeals)-II, Hyderabad, which in turn was against the order of the Deputy Commissioner of Wealth Tax, Circle-1(1), Hyderabad. The assessee is M/s. Anies Vaibhav Agricultural Properties Private Limited. The appeal was filed under Section 27(A) of the Wealth Tax Act, 1957.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court given the monetary limits prescribed by the Central Board of Direct Taxes (CBDT) for filing appeals. (Question of law) The Revenue contended that the appeal was filed in accordance with the law. The judgment does not record any specific arguments from the Revenue regarding the merits of the case or the applicability of the circulars. The judgment notes that the tax effect in the instant appeal is well below the monetary limit prescribed by the CBDT circulars for filing appeals before the High Court. The judgment does not record any specific arguments from the Respondent (assessee).

Which sections of the Income-tax Act were involved?

27(A)

AI-generated summary — verify with the full judgment below

13447 l IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY, THE THIRTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA WEALTH TAX APPEAL NO: 1 OF 2012 Appeal under Section 27 (A) of the Wealth Tax Act, 196'l arising out of the Order of the lncome Tax Appellate Tribunal, Hyderabad Bench "8" Hyderabad made in W.T.A.No. 45lHydl2004 dated 13-10-2006 preferred against the Order of the Commissioner of lncome tax (Appeals)-ll Hyderabad in WTA No. 0211 & 0210/ClT(A)-lll04-05 Dated 21-02-2004 preferred against the order of the Deputy Commissioner of Wealth Tax, Circle-1('1), Hyderabad made in No.A-246lDCIT- 1 (1) t2004-0 5 dated 24-09 -2004. Between: The Commissioner of lncome Tax-|, Hyderabad ...APPELLANT AND M/s. Anies Vaibhav Agricultural Properties Private Limited,, H.No.2-2-57120, Pan Bazar, Secunderabad - 500 003. ...RESPONDENT Counsel for the Appellant: Ms. BOKARO SAPNA REDDY, S.C. FOR INCOME TAX DEPARTMENT Counsel for the Respondent: ---- The Court delivered the following: JUDGMENT

THE. HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA ! \ WEALTH TA)( APPEAL No. 1 OF 2OL2 JUDGMENT '. tx, L I )rL tJi, s,- .-/ushce r,..sarn (oshr// Heard Ms.Bokaro Sapna Reddy, learned Standing Counsel for Income Tax, appearing on behalf of the appellant 2. The instant appeal under 27(A) of the Wealth Tax Act, 1957, has been preferred bv the Revenue as the appellant against the order dated 13.10.2006 passed by rhe lncome Tax Appetlate Tribunal, Hyderabad "B" Bench, Hyderabad, in W.T.A.No.aSlHy<1l2OO4 for the Assessment Year I 998-99. 3. Central Board ol Direct Taxes (CBDT) has issued Circular No.9 ol 2024 dated 17.O9.2024, amending the previous Circular No.5 of 2024 dated 15.03.2024, bv further enhancing the monetar5r 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. [n paragraph 2 of tine said Circular, we find that the monetary limit fixed for filing an appeal before the High court is Rs.2.00 crore. \ I

Page 2 of 3 4 In the instant appeal, tax effect is well belolr, the monetarv limit. 5. Therefore, the appeal filed by the Revenue is dismissed in terms of the aforesaid circular No.9 of 2024 dated rr.og.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 sequel, miscellaneous applications pending if any, shall stand closed. Sd/. K. SRINIVASA RAO JOINT REGISTRAR ,TRUE COPY// ECTION OFFICER To, 1. The lncome Tax Appellate Tribunal, Hyderabad Ben records if any) "B", Hyderabad (with 2. The Commissioner of lncome tax (Appeals)-ll, Hyderabad 3. The Deputy Commissioner of Wealth Tax, Circle-1(1), Hyderabad 4. One CC to IVls. Bokaro Sapna Reddy, S.C. for lncome Tax Department loPUCl 5. Two CD Copies Plp/DL I { a^) I I w

HIGH COURT DATED:1310212025 JUDGMENT WTA.No.1 of 2012 DISMISSING THE APPEAL WITHOUT COSTS lHE Si 14 i 2t nr,t yy15 t i/ Dr"... .. ,,. , 3 @

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