COMMSSR.OF INCOME TAX.A.P-I,HYD. vs. M/S.P.E.S.ENGINEERS.HYD.

[32es ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD WEDNESDAY, THE FOURTEENTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY TWO PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE C.V. BHASKAR REDDY |.T.T.A. NO: 31 OF 200 3 lncome Tax Tribunal Appeal under Section 260 of the Income Tax Act, agarnst the Order of the lncome Tax Appellate Tribunal, Hyderabad Bench ,A, Hyderabad in ITA No.279lHyd/'1999 for assessment year 1995-96 dated 19lo2l2oo1 preferred against the order of the commissioner of lncome Tax Andhra pradesh -1, Hyderabad in HQRs.File No.H.Qrs l/50/iB/gB-99 dated 30/03/1999 preferred against the order of the Assistant commissioner of lncome Tax, pAN/GlR No.p-220lAC- 4(5)/ Hyderabad Circie -4(5), Hyderabad. Between: Commissioner of lncome Tax, A.P.-1, Hyderabad. AND ...APPELLANT M/s. P.E.S-Engineers (P) Ltd., 6-3-1090/1/1A, Raj Bhavan Road, Somajiguda, Hyderabad. ...RESPONDENT For the Appellant : SRI B.NARASTMHA SARMA, LEARNED COUNSEL REp. FOR MS.K,MAMATA CHOWDARY, Sr. SC FOR t.T.DEPARTMENT For the Respondent : SRI CHALLA GUNARANJAN, Advocate The Court delivered the following : JUDGMENT I

THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY I.T.T.A. No.31 of 2OO3 JUDGMENT: tPer t1e Hon bte the C4ef Justrce lJjoi Bhugoal Heard Mr. B.Narsimha Sarma, learned counsel representing Ms. K.Mamata Chowdary, learned Senior Standing Counsel for Income Tax Department appearing for the appellant and Mr. Challa Gunaranjan, iearned counsel for the respondent. 2. This appeal under Section 2604 of the Income Ta-x Act, 1961, has been fiied against the order dated 19.02.2001 passed by the Income Tax Appellate Tribunal, Hyderabad Bench A', Hyderabad (Tribunal) 1n LT.A.No. 279 I H _t,d I 1999 for the assessment year 1995-96 3. In the appeal, the folion,ing substantial questrons of lar,,, have been proposed: "A) Whether on the facts and in the circumstances of the case, the Appellate Tribuna.l is justihed in holding that initiation of the revisiona.l jurisdiction by the Commissioner tt/s. 263 of the Act, is impermissible in law ? B) Whether the finding of the Appellate Tribuna] that all the issues - factual and legal had been taken into

) - \.] account by the assessing officer in the assessment U/s.1a3(3) of the Act, is based on material on record. ? C) Whether the Appellate Tribunal is justified in holding that the assessee's activity amounts to manulacturing activity of an article or a thing in an industrial undertaking wthin the purview of Section 80 IA of the Act, notwtthstanding, contract involving erection of penstock pipes in the Dam site with inevitable association of civrl work ? D) Whether the finding of the Appellate Tribunal that there is manufacturing activity of an article or a thing in the process of delivery and erection of penstock pipes is correct in law inspite of decision of the Supreme Court in Buddaraja's case ? 4. On 1 1.03.20O3, the appeal was admitted. 5. In the hearing today, we have perused the assessment order dated 28.01.2000. We find therefrom that the taxable income of the respondent r,,,as determined at Rs.34,52,835.00 and quantum ol ta-x to be paid was assessed at Rs. 19,47,9I8.00. 6. Central Board of Direct Taxes (CBDT) has issued Circular No. 17 of 2019, dated 08.08.2019, arnending the previous Circular No.3 of 2018, dated ll.O7.2Ol8, by further enhancing the monetary limits for filing appeals by the Income Tax Department before the Income Tax Appellate

Tribunals, High Courts and Supreme Court as a measure for reducing litigation. In paragraph 2 of the said circular rve {ind that the monetary limit fixed for filing an appeal before the High Court is Rs.1.00 crore. 7 . In the instant appeai, tax effect is Rs. i9,47,9 i8.00, which is well below the monetary limit' of 8. Therefore, the appeal filed by the Department is dismissed in terms of the aforesaid Circular No 17 of 2019, dated 08.08.2019. However, if the appeal comes within the exception under paragraph 10 of Circular No.3 of 2018, it would be open to the Income Tax Department to seek revival of the appeal. Miscellaneous applications pending, if an1', shall stand closed. However, there sha-11 be no order as to costs To Sd/.B.S.CHIRAN EVI JOINT REGI RAR //TRUE COPY' SECTION OFFICER The lncome Tax Appellate Tribunal Hyderabad 'A' Bench, Hyderabad The Commissioner of lncome Tax -1, Hyderabad. The Assistant Commissioner of lncome Tax Company circle -4(5), Hyderabad. One CC to Sri B.Narasimha Sarma, SC for lncome Tax, IOPUC] One CC to Sri Challa Gunaran.jan, Advocate [OPUC] Two CD Copies One Spare Copy 1 2 a 4 q 6 7 Ki.'$$'

JUDGMENT ITTA.No.31 of 2003 DISMISSING THE ITTA WITHOUT COSTS. HIGH COURT DATED:1410912O22