The Commissioner of Income TAx-III vs. M/s.Incon Engineering (P) Ltd

IN"THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD WEDNESDAY ,THE FOURTEENTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY TWO PRESENT THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HON'BLE SRI JUSTICE C.V. BHASK/\R REDDY INCOME TAX TRIBUNAL APPEAL NO: 25'l oF 2003 Appeal Under Section 260 A of the lncome Tax Act, 1961 aggrieved by the order in l.T.A. No. 1286 / HYD / 1995 dated 11-03-2003 0n the file of the Court of the lncome Tax Appellate Tribunal , Hyderabad Bench'B', Hyderabad preferred against the order of the commissioner of lncome Tax ( Appeals ) -lll Hyderabad in Appeal No. 231 & 246 tac4 (5)/ CIT (A) - lll'94'95 dated 11'01' 1g9g preferred against the order of the Asst. commissioner of lncome Tax, Company Circte - 4 (5) , Hyderabad dated 23-03'1994 in PAN / GIR No' I -4 /AC 4 (5) Between: The Commissioner of lncome Tax-ll, Hyderabad ...APPELLANT AND lV/s.lncon Engineering (P) Ltd, Hyderabad ' ...RESPONDENT Counsel for the Appellant SRl. B. NARASIMHA SARMA representing for Ms. K. MAMATA CHOWDARY SC FOR lT DEPARTMENT Counsel for the Respondent: SRI CHALLA GUNARANJAN The Court made the following: ORDER

THE HON'BLE THE CHIEF JUSTICE UJJAL BHIIYAN AND THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY I.T.T.A. No.251 ot 2003 JUDGMENT: eer the Hon'bte the Chiel Justice UJjat Bhugan) Heard Mr. B.Narsimha Sarma, learned counsel representing Ms. K.Mamata Chowdary, learned Senior Standing Counsel for Income Tax Department appeaing for the appellant and Mr. Challa Gunaranj an, learned counsel for the respondent. 2. This appeal under Section 26O.4 of the Income Tax Act, 196i, has been filed against the order dated 11.03.2003 passed by the Income Tax Appellate Tribunal, Hyderabad Bench A', Hyderabad (Tribunal) in I.T.A.No. 1286/Hydlt99S for the assessment year l99t-92. 3. In the appeal, the following substantial questions of law have been proposed: "A) Whether on the facts and in the circumstances of the case, the Appellate Tribunal is justified in holding that Accounting Staadard-7 prescribed by Institute of Chartered Accountants would be appropriate and applicable even in relation to execution of turnkey projects of engineering contracts of a shorter duration ?

2 B) Whether the Appellate Tribuna.l is justified in recording the frnding that the method of accounting system maintained by the assessee is not correct, notwithstanding the assessee adopting inapplicable AS-7 to an engineering contract of a shorter duration ? C) Whether the findings of the Appellate Tribuna_l in this behalf are based on materia,l on record ? D) Whether the Appellate Tribunal is .justified in holding that rejection of books of accounts is tmpermissible merely because the assessee had maintained accounts in accordance with AS-7 consistently? 4. On 15.12.2003, the appeal was admitted. 5. In the hearing today, we have perused the assessment order dated 23.03.1994. We find therefrom that the taxabie income of the respondent was determined at Rs.4, tZ,4lg.OO and quantum of tax to be paid was assessed at Rs.2,72,249.OO. 6. Central Board of Direct Taxes (CBDT) has issued Circular No. 17 of 2019, dated 08.08.2019, amending the previous Circular No.3 of 2018, dated 71.OZ.2OlB, 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

J 7. In the instant appeai, tax effect is of for reducing litigation. In paragraph 2 of the said circular we find that the monetary limit fixed for filing an appeal before the High Court is Rs. 1.00 crore. Rs.2,72,249 l-, which is well below the monetan' limit 8. Therefore, the appeal filed by the Department 1S dismissed in terms of the aforesaid Circular No. 17 of 2019, dated 08.08.20i9. However, if the appeal comes u,ithin 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 any, shall stand ciosed. However, there sha1l be no order as to costs. -..- SD/.K.SRtNIVASA JOINT REGIST R o ,TRUE COPY// SECTION O FICER To i.-Th" ln.or" Tax Appellate Tribunal, Hyderabad Bench B Hyderabad' Z. fne Commissioner'of lncome Tax , Appeals - lll, Hyderabad' . . g. fhe nsst. Commissioner of lncometax , Company Circle -4 (-5), Hyderabad +. One C-C io Ms. K. MAMATA CHOUDARY, Advocale^[OP^U.Cl 5. o;; CC io Snl. CHALLA GUNARANJAN Advocate [OPUC] 6. Two CD CoPies 7. One Spare CoPY I \ &---

HIGH GOURT DATED:1410912022 JUDGMENT ITTA.No.251 of 2003 DISMISSING THE ITTA WITHOUT COSTS n^ rA .\\;-_::TAr€ o o(' 28 fliJ 2$[ o \ 1A irFz I ,..) /.-aA (t>t