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

WTA/7/2008HC TelanganaHBHC01040206200813 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 is dismissed in terms of CBDT Circular No. 9 of 2024. The Court noted that the Central Board of Direct Taxes (CBDT) had issued Circular No. 9 of 2024, amending Circular No. 5 of 2024, to enhance monetary limits for filing appeals to reduce litigation. The circular fixed the monetary limit for filing an appeal before the High Court at Rs. 2.00 crore. The Court observed that the tax effect in the instant appeal was well below this limit. Consequently, the appeal was dismissed. The Court also stated that if the appeal falls within any exception provided in Circular No. 5 of 2024, the Income Tax Department would be at liberty to seek revival of the appeal. No costs were awarded.

What were the facts?

The Revenue, Commissioner of Wealth Tax-VI, Hyderabad, filed an appeal before the High Court under Section 27(A) of the Wealth Tax Act, 1957. This appeal was against an order dated 05.12.2002 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B'. The ITAT's order was in relation to Wealth Tax Appeal No. 314/Hyd/1997 for the Assessment Year 1990-91. The appeal before the High Court was preferred against an order of the Commissioner of Wealth Tax (Appeals)-I, Hyderabad, which in turn was against an order of the Assistant Commissioner of Income Tax, Circle 1(3), Hyderabad. The respondent, Mr. Veer Ali Khan, did not appear before the High Court.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the monetary limits for filing appeals as stipulated by CBDT Circular No. 9 of 2024 (dated 17.09.2024), which amended Circular No. 5 of 2024 (dated 15.03.2024)? The Revenue, as the appellant, argued that the appeal should be dismissed as the tax effect is below the prescribed monetary limit for filing appeals before the High Court, which is Rs. 2.00 crore, as per the said circular. The Respondent did not appear, and therefore, no arguments were recorded on their behalf.

Which sections of the Income-tax Act were involved?

27(A)

AI-generated summary — verify with the full judgment below

t3447l 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 JUST1CE NARSING RAO NANDIKONDA WEALTH TAX APPEAL No: 7 of 2008 Appeal under Section 27 (A) of 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.314/Hydl1997 dated 05-12-2002 preferred against the order of the Commissioner of Wealthtax, (Appeals)-|, Hyderabad in Appeal No 2BIAC 1(3ycwr(A)u97-98 dated 19-06-1997 preferred against the order of the Assistant Commissioner of lncome Tax, Circle 1 (3), Hyderabad made in pAN/GlR R_714 dated 30-03-1995. Between: Commissioner of Wealth Tax-Vl, Hyderabad ...Appellant AND Nb.l\/ir tVeraj Ali Khan, Rlo.3-5-78215213/8, Gough Bunglow, King Koti, 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 n I ...Respondent

THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA 1VEALTH TAx APPEAL No.7 OF 2OO8 JUDGMENT '. t)et t tat! ],:e ;n Juslice P.so,t Koshll Heard Ms.l3okaro Sapna Reddy, Iearned Standing Counsel for Income Tax, appearing on behalf of the appellant. 2. The instanl appeal under 27(A) of the Wealth Tax Act, i957, has been preferred l.ry the Revenue as the appellant against the order dated 05.12.2QO2 passed by the Income Ta-x Appellate Tribunal, I I ( Hyderabad "B" Bench, Hyderabad, in W.T.A.No.3lalHyd/1997 for the ( Assessment Year I 990-9 I 3. Central Bonrd of Direct Taxes (CBDT) has issued Circular No.9 of 2024 dated 17.O9.2024, amending the previous Circuizrr No.5 of 2024 dated 15.03.202,*, bv further enhancing the monetary limits for fiiing appeals by the Income Tax Department before the Income Tax Appellate Tribun;als, lligh Courts and Supreme Court as a measure for reducing litigation. In paragraph 2 of the said Circular. we find that the monetarSr limit lixed for filing an appeal before the High Court is Rs.2.00 crore. I I I

\ Page 2 of 3 In the instant appeal, tax effect is well below the monetary limit. 6. As a sequel, miscellaneous applications pending if any, shall stand closed SD/-K.SRINIVASA RAO J NT REGISTRAR //TRUE COPY// E ION OFFICER " To, 1. The Income Tax Appellate Tribunal, Hyderabad Bench ',8" Hyderabad. 2. The Commissioner of Wealth{ax, (Appeals)-1, Hyderabad. 3. The Assistant Commissioner of lncome Tax, Circle 1 (3), Hyderabad 4. One CC to Ms. Bokaro Sapna Reddy, Standing Counsel for lncome Tax loPUCl 5. Two CD Copies kam/PSLw 4. 5' Therefore, the appeal fired by the Revenue is dismissed in terms of the aforesaid circurar No.9 of 2024 daLed 12.og.2024. 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.

HIGH COURT DATED:1310212025 i A L 11 (\ ,:l l JUDGMENT WTA.No.7 of 2008 DISMISSING OF THE APPEAL 'ru s- )>2 a) l]:: ( 1 I Aia \.. *O ,,\ @

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