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[ 32es ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAI) WEDNESDAY, THE SECOND DAY OF NOVEIMBER TWO THOUSAND AND TWENTY TWO PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE C.V. BHASKAR REDOY l.T.T.A. NO: 71 OF 2006 lncome Tax Tribunal Appeal under Section 260-4 of the lncome Tax Act, 1961, against the order of the lncome Tax Appellate Tribunal, Hyderabad Bench 'B' Hyderabad in ITA No.489iHl2000, for assessment year 1998-99 daled 2111212004 preferred against the order of the Commissioner of lncome Tax (Appeals-ll), Hyderabad, Appeal No 13/JCSR4/ClT (A) ll/1999-2000 dated 3110312000 preferred against the Order of the Joint Commissioner of lncome Tax (Assts) Spl. Range, Hyderabad PAN/GlR No.S-100/SR.4/ Hyderabad. Between: The Commissioner of lncome Tax -lll, Hyderabad. AND ...APPELLANT M/s. Srinivasa Hatcheries P\rt. Ltd.,3-5-823,3'd Floor, Hyderabad Business Centre, Hyderguda, Hyderabad. ...RESPONDENT For the Appellant : SRI J.V.PRASAD, SC FOR INCOME TAX DEPARTMENT For the Respondent:SRl Y.RATNAKAR, Advocate The Court made the following: ORDER
THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY JUDGMENTi eer the Hon'ble tlle Cluef Justice Lijjat BlLuyan) Heard Mr. J.V.Prasad, learned Standing Counsel, Income Tax Department lor the appellant and Mr. Y.Ratnakar, learned counsel for the respondent 2. This appeal has been preferred by the Revenue as the appellant under Section 260A of the Income l'ax Act, 196i (briefly referred to hereinafter as the Act), assailing the legality and validity of the order dated 2l .12.2004 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad (Tribunal) 1n I.T.A.No.4B9lHyd/2000 for the assessment year 1998-99. 3. In the appeal, the following questions have been proposed as substantial questions ol law: " 1 . On the facts and in the circumstances of the case when the Assessing Oflicer disallowed the deduction clairned by tJ:e assessee u/s. 80 IA of I.T. Act vide I.T.T.A. No.71 of 2O06
HC.T & ']''RRJ I.TTL No.7 I oJ 2406 2. When the law is settled by the Supreme Court in regard to claim for deduction u/s. 80 IA of the Act vide its judgment reported in 237 ITR page 134 which was pronounced subsequent to fi1ing of return but before processing of return by the Assessing Of{icer u/s. 143 of I.T. Act whether the hndings of the Tribunal and Appellatc Authority relying on earlier contra judgment of this Court reported in 174 ITR page 231 are sustainable in law? 3. Whether the respondent assessee is entitied to claim deduction as claimed in his return of income as per Sec. 80 IA of the Act in view of the law laid down by the Supreme Court reported in 237 ITR page 134?" 4. On 15.02.2006, the appea-l was admitted. 5. Mr. Prasad, learned counsel for the appellant fairly submits that the disputed tax would be below Rs.50 lakhs. 6. In the hearing today, we have perused the assessment order dated 31.03.2OO0. We find therefrom that the taxable income of the respondent was assessed at 2 intimation u/s.1a3(1)(a) of I.T. Act relying on the decision of the Supreme Court reported in 237 ITR page 134, whcther thc finding of the Appellate Authority confirmed by the ITAT upholding the said deduction claimed by the assessee based on an earlier contra decision of this Court reported in 174 ITR page 231 is sustainable in law?
HC] & CVBRJ I.T.T.A.Na.71of 20O6 Rs.6,51,42,364.00 and the ta-x to be paid was quantified at Rs.28,51,426.00. 7. Central Board of Direct Taxes (CBDT) has issued Circular No.17 of 2O19, dated 08.08.2019, amending the previous Circular No.3 of 2018, dated 11.07.2018, by further enhancing the monetary iimits lor filing appeals by the Income Tax Department before the Income Ta-x Appellate Tribunals, High Courts and Supreme Court as a measure for reducing litigation. In paragraph 2 of the said circular rn'e find that the monetary iimit fixed for filing an appeal before the High Court is Rs. 1.00 crore. J 8. In the instant aPPeal, tax effect Rs.28,51,426.00, which is well below the monetary limit' g . Therefore, the appeal filed by the Department is dismissed in terms of the aforesaid Circular No'17 of 2019, dated 08.O8.2O19. However, if the appeal comes within the exception under paragraph 10 of Circular No'3 of 207A, it would be open to the Income Tax Department to seek revival of the appeal.
HC.t & ('t'Btt.I 1.7'.71.4.,\'c,,.7I t)/ ) ()( )() i0. Miscellancous applications pending, if any, shall stand closed. Hou,ever, there shail be no order as to costs. Sd/.K.SRINIVASA o //IRUE COPY// JOINT REGIS RAR SECTION OFFICER ! To Kj 1 . The lncome Tax Aooe ate Tribunal,_ Hyderabad Bench ,8, Hyderabad. 2 The Commissioner o[ lncome Tax (Appeals.ll), Hyderabad. 3. rhe Joint commissioner or rn.orn" iII]i;;i;i i#;s", Hyderabad. 4. one cc to sriJ.V.prasad, sc-iorir6"p"J,i,iJrii6pucl I 9n" CC to Sri y Ratnakar. Advocate tOpUCl - '.-' 6. Two CD Copies 7. One Spare Copy
HIGH COURT DATED:0211112022 JUDGMENT ITTA.No.71 of 2006 I q 16 t{ii'l ?lfl? f\ DISMISSING THE ITTA, $>r.-- -==>- I