DCIT., CENTRAL CIRCLE-1(3), HYDERABAD vs. C K ENTERTAINMENTS PRIVATE LIMITED, HYDERABAD
Income Tax Appellate Tribunal, Hyderabad “B” Bench, Hyderabad
PER MANJUNATHA G., A.M :
These appeals filed by the Revenue are directed against the separate orders of Commissioner of Income Tax (Appeals),
Hyderabad – 11, dated 15.03.2025 pertains to the assessment years 2020-21 and 2016-17, respectively.
C.K. Entertainments Pvt. Ltd.
It is stated before us that the tax effect in these appeals are less than Rs.60 lakhs and, therefore, the Circular No.279 /Misc./M-74/2024-ITJ, dated 17th September, 2024 issued by the Central Board of Direct Taxes (CBDT) issued in amendment to Circular 5 of 2024 under Sec.268A(1) of the I.T. Act comes into play, wherein, the monetary limit for filing the appeals by the Revenue before the ITAT and various High Courts as well as Apex Court are revised with an object of the reducing the tax litigation. Vide para 2 of the said circular (supra) it is stated that in cases where the tax effect in the appeals to be filed before the Appellate Tribunal does not exceed Rs.60 lakhs appeals should not be filed. 3. Insofar as the written submissions of the Revenue dt.06.11.2025 in light of Para 3.2(b) and Para 6.2 of the Circular No.5 of 2024 dated 15.03.2024, in our considered view, the above exceptions provided in Para 3.2 are not applicable to the present case, because Para 3.2 specifically deals with filing of appeal by the Revenue and contesting the issues on merits, irrespective of the extent of monetary limits where the Revenue has contested some issues on meris irrespective of tax limit in Higher Judicial Forums like Hon'ble High Court and Hon'ble Supreme Court and C.K. Entertainments Pvt. Ltd.
the said issue is not attained finality and further, to keep the issues alive, the Revenue filed an application u/s 158AB of the Income Tax Act, for deferral of other appeals to avoid filing of appeal in such cases. Further, when judicial finality is achieved in favour of the Revenue in the ‘other case’, the appeal in ‘relevant case’ is contested on merits subsequent to the decision in the ‘other case’. Further, if the judicial outcome in the ‘other case’ is not in favour of the Revenue and is not accepted by the Department, appeal against the same may be contested on merits in the ‘other case’ irrespective of the extent of monetary limits to arrive at judicial finality. In the present case, the Revenue has failed to file any evidences to bring the present case in light of Para 3.2 of the above Circular No.5 of 2024 dated 15.03.2024,
4. Insofar as Para 6.2 referred to by the Revenue in their letter dt.06.11.2025, in our considered view, once again the case of the assessee does not fall under Pra 6.2, because Para 6.2 specifically deals with filing of appeal in other assessment years where for one or two assessment years, the Revenue has not filed appeal on the ground of monetary limits specified in the CBDT Circular.
Therefore, in our considered view, the arguments of the Revenue
C.K. Entertainments Pvt. Ltd.
that, the case of the assessee falls under exceptions provided under Circular No.5/2024 dt.15.03.2024, is incorrect and cannot be accepted.
Thus, taking a note of CBDT
Circular
No.(F.279/Misc./M074/
2024-ITJ), dated
17/09/2024
and considering the fact that the tax effect in the instant appeals are less than Rs.60 lakhs, the captioned appeals deserves to be dismissed as not pressed/not maintainable. However, we make it clear that, the issues raised in the instant appeals are left open to be examined in the appropriate proceedings, if arises, in future.
At the same time, we also make it clear that, if the appeals fall in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for recalling the order, if so, advised.
5. Accordingly in the light of CBDT
Circular
No.
No.(F.279/Misc./M074/2024-ITJ),dated 17/09/2024, the appeals filed by the Revenue stand dismissed.
C.K. Entertainments Pvt. Ltd.
In the result, both the appeals filed by the Revenue are dismissed. Order pronounced in the Open Court on 7th November, 2025. श्री विजय पाल राि (VIJAY PAL RAO) उपाध्यक्ष /VICE PRESIDENT (मंजूिधथ जी) (MANJUNATHA G.) लेखा सदस्य/ACCOUNTANT MEMBER
Hyderabad, dated 07.11.2025. TYNM/sps
आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:-
निर्धाररती/The Assessee : C.K. Entertainments Private Limited, H.No.8-2- 293/K/332/G-1, Somanath Residency, Phase-3, Kamalapuri Colony, Hyderabad – 500073. 2. रधजस्व/ The Revenue : The Deputy Commissioner of Income Tax, Central Circle – 1(3), Hyderabad.
The Principal Commissioner of Income Tax (Central), Hyderabad. 4. नवभधगीयप्रनतनिनर्, आयकर अपीलीय अनर्करण, हैदरधबधद / DR, ITAT, Hyderabad 5. गधर्ाफ़धईल / Guard file
आदेशधिुसधर / BY ORDER
Sr. Private Secretary
ITAT, Hyderabad