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

WTA/11/2008HC TelanganaHBHC01014350200813 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 dismissed in terms of CBDT Circular No. 9 of 2024 dated 17.09.2024, which amended Circular No. 5 of 2024 dated 15.03.2024. These circulars enhanced the monetary limits for filing appeals by the Income Tax Department to reduce litigation, fixing the limit for appeals before the High Court at Rs. 2.00 crore. Since the tax effect in the instant appeal was well below this limit, the appeal was dismissed. The Court also noted that if the appeal fell 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, Hyderabad, filed an appeal under Section 27(A) of the Wealth Tax Act, 1957, against an order dated 29.01.2003 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'A'. This order pertained to Assessment Year 1991-92 and arose from an appeal against the order of the Deputy Commissioner of Income Tax (Appeals). The original order was passed by the Assistant Commissioner of Wealth Tax. The tax effect in the instant appeal was stated to be well below the monetary limit prescribed by the Central Board of Direct Taxes (CBDT) for filing appeals.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court given the monetary limits prescribed by CBDT Circulars for filing appeals. The Revenue contended that the appeal was filed against the order of the ITAT. The judgment does not record any specific arguments made by the Revenue regarding the merits of the case. The Revenue relied on the fact that the appeal was preferred against the ITAT's order. The judgment does not record any arguments made by the Respondent (assessee).

Which sections of the Income-tax Act were involved?

27(A)

AI-generated summary — verify with the full judgment below

13447 I IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY, THE THIRTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA PRESENT APPEAL Appeal under Section 27 (A) of 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.66/HYD/1998 (Assessment Year 1991-92 ) dated 29-01-2003"preferred against the Order of the Deputy Commissioner of lncome tax (Appeals ) Hyderabad in Appeal No. WT I ACll (4)l 11 I 94-95 dated 23-12-97 preferred against the order of the Asst. Commissioner of Wealth Tax, Circle 1(4), Hyderabad dated 18-3-94 in PAN/GIR No. 5-720 . Between: Commissioner of Wealth Tax Vl, Hyderabad. ...Appellant AND Sb. Shareefa Begum, Hyderabad. ...Respondent Counsel for the Appellant: Ms. Bokaro Sapna Reddy, SC FOR lT Counsel for the Respondent: Sri Ravindra Chenji 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. L 1 OF 2OO8 JUDGMENT: (per lTon'bte Sn Justice P.Sam Koshy) Heard Ms.Bokaro Sapna Reddy, learned Standing Counsel for Income Tax, appea-ring on behalf of the appellant. 2. The instant appeal under 27(A) of the Wealth Tax Act, 1957, has been preferred by the Revenue as the appellant against the order dated 29.01.2003 passed by the [ncome Tax Appellate Tribunal; Hyderabad 'A" flench, Hyderabad, in W.T.A.No.66lHydl1998 for the Assessment Year 199 | -92. 3. Central Boztrd of Direct Taxes (CBDT) has issued Circular No.9 of 2024 dated 17.O9.2024, amertding the previous Circular No.S 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 Tribuneils, High Courts and Supreme Court as a measure for reducing litigatiorr. 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.O0 crore.

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.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/ SECTION OFFICER To, 1. The tncome Tax Appellate Tribunal, Hyderabad Bench "A" Hyderaba.d 2. The Deputy Commissioner of lncome tax (Appeals ) Hyderabad. 3. The Assistant Commissioner of Wealth Tax , Circle 1(4), Hyderabad. 4. One CC to Ms. Bokaro Sapna Reddy, SC FOR lT [OPUC] 5. One CC to Sri Ravindra Chenji, Advocate [OPUC] 6. Two CD Copies Kam/gh / /

f i I i i I I i I I I I a I i I i I I I I I ' HIGH COURT DATED i1310212025 JUDGMENT WTA.No.11 ot 2008 DISMISSING OF THE APPEAL g lllE ) ? 5 ilott 20f <, r? /-,4

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