Commissioner of Wealth Tax VI, Hyderabad. vs. Nb. Rahmat Ali Khan

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WTA/4/2008HC TelanganaHBHC01008530200813 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 enhances the monetary limits for filing appeals by the Income Tax Department to reduce litigation. The Court noted that the monetary limit for filing an appeal before the High Court is Rs. 2.00 crore, and the tax effect in the instant appeal was well below this limit. 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. The appeal was dismissed on the ground of monetary limit, not on merits.

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 28.01.2003 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. The appeal pertained to Assessment Year 1990-91. The respondent in the appeal was Mr. Rahmat Ali Khan. The ITAT's order was preferred against an order of the Commissioner of Income Tax (Appeals)-I, Hyderabad, which in turn was against an order of the Assistant Commissioner of Wealth Tax, Circle 1(3), Hyderabad.

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. The Revenue contended that the appeal was filed in accordance with the law. The Respondent did not record any specific arguments on this point. The Tribunal had to decide if the tax effect in the instant appeal was below the monetary limit set by the CBDT Circulars for filing appeals before the High Court.

Which sections of the Income-tax Act were involved?

27(A)

AI-generated summary — verify with the full judgment below

\.. f -& 13447 ) 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:4 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 "8" Hyderabad made in W.T.A.No. 142lHydl1997 dated 28-01-2003 preferred against the Order of the Commissioner of lncome tax (Appeals )-l Hyderabad in Appeal No 23221AC1(3)tClT(A)l/95-96 Dated 13-03-1997 preferred against the order of the Assistant Commissioner of Wealth Tax , Circle 1 (3), Hyderabad made in PAN/GIR R-7 14 dated 30-03-1995 . Between: Commissioner of Wealth Tax Vl, Hyderabad .,.APPELLANT AND Nb. Rahmat Ali Khan, S/o late Hashmat Jan Bdr. C/o Trustees of HEH, Nizams Jewellery Trust, 22-3-660, Purani haveli, Hyderabad. ...RESPONDENT Counsel for the Appellant: Ms. BOKARO SAPNA REDDY, S.C. FOR INCOME TAX Counsel for the Respondent: SRI KASYAPA SASTRY The Court delivered the following: JUDGMENT /'

-=w ,/ THE HON'BLE SRI JUSTTCE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA WEALTH TAX APPEAL No.4 OF 2OO8 JUDGMENT /1r,r ior.'t,l.r S,r./usrice P.Sotn KosLtlj) Heard Ms.llokaro Sapna Reddy, learned Standing Counsel for Income Tax, apprraring on behalf of the appellant. 2. The instan t app<:rrl under 27(A) ol the Wealtl-r Tax Act, 1957, has been prefert cd rry thc Revenue as the appellant against the order \ dated 28.01.2003 passt:d by the Income Tax Appellate Tribunal, Hyderabad "B" fsenctr, H.yclerabad, in W.T.A.No. A2 lHyd/1997 for therl Assessment Ycar 1990 91. 3. Centrat Roirrrl ol Direct Taxes (CBDT) has issued Circular No.9 of 2024 dated l7.O(t.2O)1, amending the previous Circular No.5 of 2O24 dated I 5.03.202 I. br, ft-rrther enhancing the monetary limits for filing appeals by the Income Tax Department before the Income Ta-x Appellate Tribr-rna1s, High Courts and Supreme Court as a measure for reducing litigation. Ir.r paragraph 2 of the said Cir<:ular, we find that the monetarl, limit fixcd for filing an appeal before the High Court is Rs.2.00 crore . \

q-!r 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 sequel, miscellaneous applications pending if any, shall stand closed. Sd/- K. SRINIVASA RAO JOINT REGISTRAR //TRUE COPY// ECTION OFFICER To, 1. The Income Tax Appellate Tribunal' Hyderabad Bench "B" Hyderabad Z. fne Commissionei of lncome tax (Appeals )-l Hyderabad 5. fne nssistrnt Commissioner of Weaith Tax ' Circle 1 (3)' Hydera-bad ; o"; cC to Ms.Bokaro Sapna Reddy, S'C for lncome Tax [oPUC] 5. One CC to Sri Kasyapa Sastry, Advocate [OPUC] 6. Two CD CoPies Plp/gh % r'

tr'--,.4 HIGH COURT DATED:13t0212025 JUDGMENT WTA.No.4 of 2008 DISMISSING THE APPEAL 111:;.,.- ) o 04 APB 2[6 9e sPAT a.rr(-9 7 C) -b I t /I I $ ,i,

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