Commissioner of Wealth Tax-VI vs. Nb.Danish Ali Khan

WTA/9/2008HC TelanganaHBHC01041877200813 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 dismissal was based on Circular No. 9 of 2024, dated 17.09.2024 (which amended Circular No. 5 of 2024, dated 15.03.2024), issued by the CBDT. This circular enhanced the monetary limits for filing appeals before appellate tribunals, High Courts, and the Supreme Court to reduce litigation. The judgment specifically notes that the monetary limit for filing an appeal before the High Court is Rs. 2.00 crore. In the instant appeal, the tax effect was well below this prescribed monetary limit. Therefore, the appeal was dismissed in terms of the circular. The court also noted that if the appeal fell within an exception to Circular No. 5 of 2024, the Income Tax Department could seek revival of the appeal. No costs were awarded. Miscellaneous applications, if any, were ordered to stand closed.

What were the facts?

The Revenue, Commissioner of Wealth Tax-VI, Hyderabad, filed an appeal before the High Court for the State of Telangana at Hyderabad. The appeal was against an order dated 21.01.2003 passed by the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench 'B', in W.T.A. No. 163/Hyd/1997 for the Assessment Year 1990-91. This appeal arose from the orders of the Commissioner of Income Tax (Appeals)-I, Hyderabad, and the Assistant Commissioner of Wealth Tax, Circle-1(3), Hyderabad. The respondent in the appeal was Mr. Danish Ali Khan, Hyderabad. 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, through its counsel Ms. Bokaro Sapna Reddy, did not argue the merits of the case. Instead, the appeal was dismissed based on a subsequent circular issued by the CBDT regarding monetary limits for filing appeals. The judgment does not record any specific contentions raised by the Revenue on the merits of the original assessment or the ITAT's order. The respondent, Mr. Danish Ali Khan, was not represented, and therefore, no arguments were recorded on his behalf.

Which sections of the Income-tax Act were involved?

Section 27(A)

AI-generated summary — verify with the full judgment below

'': 43447 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSORY, 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: 9 OF 2008 AppealunderSection2T(A)oftheWealthTaxAct,l95Tarisingoutofthe order of the lncome Tax Appellate Tribunal, Hyderabad Bench "8" Hyderabad made in w.T.A.No. 163/Hyd/1997 dated 21-01-2003 prefened against the order of theCommissioneroflncometax(Appeals)-lHyderabadinAppealNo' y-,g 282lAC1(3yClT(A)l/95-96 Dated 13-03-1997 preferred against the order of the AssistantCommissionerofWealthTax,Circlel(3),HyderabadmadeinPAN/GIR D-705 dated 30-03-1995 Between: Commissioner of Wealth Tax-Vl, Hyderabad AND Nb.Danish Ali Khan, Hyderabad Counsel for the Appellant: Ms. BOKARO SAPNA REDDY' S.C. FOR INCOME TAX Gounsel for the ResPondent: ---- The Court delivered the following: JUDGMENT .,.APPELLANT ...RESPONDENT f

T}IE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON''BLE SRI JUSTICE NARSING RAO NANDIKONDA WEALTH TA)( APPEAL No.9 OF 2OO8 JUDGMENT: lter 1{ 'L'bte S.rJustice P.Sam Koshu) appeals by tlre .ncome Tax Department before the Income Tax Heard M s. Bokaro Sapna Reddy, learned Standir-r5; Counsel for Income Tax, alrpea.ring on behalf of the appellant 2. The instr nt zrppeal under 27(A) of the Wea,lth Ta-x -A.ct, 1957, has been preferre< by the Revenue as the appellant against the order dated 21.01.200.3 passed by the Income Tax Appellate Tribunal, Hyderabad "13' Bt:nch, Hyderabad, in W.T.A.No.163 lHyd/1997 for the Assessment Ye ar I 990-9 1 3. Central Iioard ol Direct Taxes (CBDT) has issued Crrcu]ar No.9 of 2024 dated 17.09'.2024, amending the previous Circular No.5 of 2024 dated 15.03.21124 , by further enhancing the monetary limits for filing I Appellate TribrLnals, High Courts and Supreme Courl as a measure for reducing litigation. In paragraph 2 of the said Circular, we hnd that the monetarl, irni- fixed for filing an appeal before the High Court is Rs.2.00 crorc I

Page 2 of 3 4 5 In the instant appeaJ, tax effect is well below the monetary limit. Therefore, the appeat filed by the Revenue is dismissed in terms of the aforesaid Circular No.9 of 2024 dated 17.Og.2O24. However, if the appezrl 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. Asa sequel, miscellaleous appiications pending if any, shall l , , Il q"? starld closed Sd/- K. SRINIVASA RAO JOINT REGISTRAR //TRUE COPY// SECTION OFFICER 1. The lncome Tax Appellate Tribunal, Hyderabad Bench "8" Hyderabad 2. The Commissioner of lncome tax (Appeals )-l Hyderabad 3. The Assistant Commissioner of Wealth Tax , Circle 1 (3), Hyderabad 4. One CC to Ms.Bokaro Sapna Reddy, S.C. for lncome Tax [OPUC] s. Two CD Copies Plp/gh o To, , r.' \\

I HIGH COURT DATED:13111212025 JUDGMENT WTA.No.9 of 2008 DISMISSING THE APPEAL frtE S TAI(. (.) ). ( * c. ((' :a C. 01 ApF .1rJzl \ r:. "1 C6. * tit a T(.,,tr-o f I I i I I I i I i I l I yD

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