Commissioner of Wealth - Tax - VI, vs. Nb. Mir Hamayat Ali Khan,

WTA/12/2008HC TelanganaHBHC01053960200813 February 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 primary reasoning was based on CBDT Circular No. 9 of 2024 dated 17.09.2024, which amended Circular No. 5 of 2024 dated 15.03.2021. These circulars enhance monetary limits for filing appeals to reduce litigation. The court found that the tax effect in the instant appeal was well below the prescribed monetary limit of Rs. 2.00 crore for filing appeals before the High Court. Therefore, the appeal was dismissed in terms of the aforesaid circular. 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. The operative direction was the dismissal of the appeal.

What were the facts?

The Revenue, as the appellant, filed an appeal under Section 27(A) of the Wealth Tax Act, 1957, against an order dated 27.12.2002 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'A'. The appeal pertained to the assessment year 1992-93. The original order being challenged was from the Deputy Commissioner of Income Tax (Appeals), Hyderabad, which in turn was preferred against an order of the Assistant Commissioner of Income Tax, Circle-1(3), Hyderabad. The dispute originated from the assessment proceedings for the year 1989-90, though the Tribunal's order under challenge is for AY 1992-93. The High Court noted that the tax effect in the instant appeal was well below the monetary limit prescribed by the CBDT for filing appeals.

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? (Question of law, turning on CBDT Circulars). Assessee's Contention: Not recorded. Revenue's Contention: The Revenue argued that the appeal was validly filed. However, the judgment primarily focuses on the applicability of the CBDT circular regarding monetary limits. The Revenue relied on the fact that the appeal was filed before the High Court. 2. Whether the appeal should be dismissed based on the tax effect being below the prescribed monetary limit? Assessee's Contention: Not recorded. Revenue's Contention: The Revenue implicitly argued for the appeal to be heard on merits, but the court's decision hinges on the monetary limit. The Revenue's argument, if any, regarding exceptions to the circular was not recorded.

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 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. 29lHyd/1998 Assessment year 1989-90 dated 27 -12-2002 preferred against the Order of the Deputy Commissioner of lncome tax (Appeals), Hyderabad in Appeal No.WT/AC 1(3)/61/95-96 Dated 29-12-1997 preferred against the order of the Assistant Commissioner of lncome Tax, Circle-'1(3), Hyderabad made in PAN/GlR No.H-72'1 dated 30-03-'1995. Between: Commissioner of Wealth - Tax - Vl,, Hyderabad ...APPELLANT AND Nb. Mir Hiamayat Ali Khan,, Hyderabad ...RESPONDENT Counsel for the Appellant: Ms. BOKARO SAPNA REDDY, S.C. FOR INCOME TAX DEPARTMENT Counsel for the Respondent: SRI RAVINDRA CHENJI The Court delivered the following: JUDGMENT WEALTH TAX APPEAL NO: 12 OF 2008

THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BI,E SRI JUSTICE NARSING RAO NANDIKONDA WT}ALTH TAX APPEAL No. 12 OF 2OO8 JUDGMENT 1 @er tto,r'ttte Sri Jusrrc? psam Koshg./ 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 Wea_lth Tax Act, 1957, has been preferred bv the Revenue as the appella_nt against the order dated 27.I2.2OO2 passed by the Income Tax Appeltate Tribunal, Hyderabad '4" [3enctr, Hyderabad, in W.T.A.No.29/lHyd/1998 for the Assessment Year 1992-93. 3. Central Board ol Direct Taxes (CBDT) has issued Circular No.9 of 2024 dated 17.09.2024, amending the previous Circular No.S of 2024 dated 15.03.2021,ltt,further enhancing the monetary limits for filing appeals by the Income Tax Department before the Income Tax Appellate Triburals. tligh courts and supreme court as a measure for reducing litigation. In paragraph 2 of the said Circular, we find that the monetary limrt fixed for filing an appeal before the High Court is Rs.2.O0 crore. \ t

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 lT.Og.2024. However, if the appeal comes within the exception of Cirgular No.5 of 2024, it would be open to the lncome Tax Department to seek revival of the appeal. No costs. 6, As a sequel, miscellaneous applications pending if any, sha1l / Sd/. K. SRINIVASA RAO JOINT REGISTRAR //TRUE COPY// ECTION OFFICER To, The lncome Tax Appellate Tribunal, Hyderabad Be "A", Hyderabad 1 2 3 4 The Deputy Commissioner of lncome tax (Appeals)-, Hyderabad The Assistant Commissioner of lncome Tax, Circle-1(3), Hyderabad One CC to lt/s. Bokaro Sapna Reddy, S.C. for lncome Tax Department loPUCl 5. One CC to Sri Ravindra Chenji, Advocate [OPUC] 6 Two CD Copies Plp/DL , I stard closed. I I \y

HIGH COURT DATED:1310212025 JUDGMENT WTA.No.12 of 2008 DISMISSING THE APPEAL. WITHOUT COSTS. t oa 1HE Sr4 paTcHf,(1 ? t ntu p25 Joo f ,( e \_v l +e-' qrV

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