ACIT., CIRCLE-1, KURNOOL V. SURESH CONSTRUCTIONS, GUNTAKAL

MA 30/HYD/2025

AI Insights

The case involves a Miscellaneous Application filed by the Revenue against Suresh Constructions, challenging the dismissal of their appeal by the Income Tax Appellate Tribunal, Hyderabad. The original appeal was dismissed on the grounds that the tax effect involved was below the monetary limit set by a CBDT Circular. The Revenue contended that the tax effect was actually above this limit, leading to the filing of the M.A. The Tribunal examined the calculations presented by both parties and found that the Revenue's claim of a higher tax effect included amounts not originally contested in the appeal. The Tribunal ruled that these new claims could not be introduced at the rectification stage, leading to the dismissal of the M.A.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785114 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 14-11-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Assessment Year: 2017-2018
• Appeal Filed On: 28-04-2025
• Laws Referred To: CBDT Circular No.9/2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S.RAMA RAO
• Keywords: Tax effect

Judgement Text

" MA No 30 of 2025 Suresh Constructions Page 1 of 7 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ DB-B ‘ Bench, Hyderabad ŵी रिवश सूद,Ɋाियक सद˟ एवं ŵी मधुसूदन साविड़या लेखा सद˟ समƗ | Before Shri Ravish Sood, Judicial Member A N D Shri Madhusudan Sawdia, Accountant Member M.A. No.30/Hyd/2025 ( आ.अपी.सं /ITA No.658/Hyd/2023) (िनधाŊरण वषŊ/Assessment Year: 2017-18) ACIT Circle-1 KURNOOL Vs. Suresh Constructions Guntakal PAN:ABCFS8982J (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: Shri S. Rama Rao, Advocate राज̾ व Ȫारा/Revenue by:: Dr. Sachin Kumar, Sr. DR सुनवाई की तारीख/Date of hearing: 07/11/2025 घोषणा की तारीख/Pronouncement: 14/11/2025 आदेश/ORDER Per Madhusudan Sawdia, A.M.: This Miscellaneous Application (“M.A”) is filed by the Revenue, feeling aggrieved by the order passed by this Tribunal in ITA Nos.658/ Hyd/2025 for Assessment Year 2017-18, dated 17.10.2024. 2. The Revenue has raised the following issue in the above M.A. : Printed from counselvise.com MA No 30 of 2025 Suresh Constructions Page 2 of 7 Printed from counselvise.com MA No 30 of 2025 Suresh Constructions Page 3 of 7 3. On perusal of the above, we find that the Revenue has contended that the appeal was dismissed by this Tribunal on the ground that the tax effect involved in the appeal was less than Rs.60,00,000/- in accordance with CBDT Circular No.9/2024 dated 17.09.2024. It is the submission of the Learned Departmental Representative (“Ld. DR”) that the tax effect actually involved in the appeal was Rs.64,93,510/-, which is above the monetary limit prescribed in the said Circular. Therefore, the Ld. DR submitted that there is an apparent mistake in the impugned order of this Tribunal and the same deserves to be recalled. 4. Per contra, the Learned Authorized Representative (“Ld. AR”) submitted that the correct tax effect involved in the appeal was Rs.57,15,552/- which is below the monetary limit of Rs.60,00,000/-, and therefore, there is no error in the impugned order of the Tribunal warranting recall. 5. After hearing both parties, the Tribunal directed the Ld. DR to furnish the working of the tax effect to substantiate the Revenue’s contention. In compliance, the Ld. DR filed their submission along with a working showing the tax effect at Rs.61,11,010/-, which are to the following effect: Printed from counselvise.com MA No 30 of 2025 Suresh Constructions Page 4 of 7 Printed from counselvise.com MA No 30 of 2025 Suresh Constructions Page 5 of 7 6. On perusal of the working submitted by the Ld. DR, it is noticed that an amount of Rs.1,93,177/- has been included towards the tax effect related to the deletion of bank interest income of Rs.5,58,186/- deleted by the Ld. CIT(A). In this regard, we have gone through the grounds of appeal raised by the Printed from counselvise.com MA No 30 of 2025 Suresh Constructions Page 6 of 7 Revenue during the appellate proceedings, which is to the following effect: 7. On perusal of above, it is seen that the Revenue had not raised any ground against the said deletion of bank interest income of Rs.5,58,186/- deleted by the Ld. CIT(A). On perusal of the submission made by the Ld. DR we find that the Revenue now seeks to treat the said issue as covered under the general ground (Ground No.5). In this context, we are of the considered view that an issue which was not originally raised in the appeal cannot be introduced for the first time in rectification proceedings. A rectification under section 254(2) of the Act is permissible only for a mistake apparent from record and not for advancing new claims Printed from counselvise.com MA No 30 of 2025 Suresh Constructions Page 7 of 7 or enlarging grounds of appeal. Accordingly, the request of the Revenue to consider the above issue as an additional ground is rejected. Consequently, the corresponding tax effect of Rs.1,93,177/- is excluded from the total tax effect calculated by the Revenue. Hence, after excluding Rs.1,93,177/- the net tax effect involved in the appeal works out to Rs.59,17,833/-, which is less than Rs.60,00,000/- prescribed in CBDT Circular No.9/2024 dated 17.09.2024. Therefore, we find no apparent mistake in the impugned order of the Tribunal. We are of the considered view that the Tribunal had correctly dismissed the appeal of the Revenue in view of the monetary limit. Accordingly, the M.A. filed by the Revenue is dismissed. 8. In the result, the M.A. filed by the Revenue is dismissed. Order pronounced in the Open Court on 14th November, 2025. Sd/- Sd/- (RAVISH SOOD) JUDICIAL MEMBER (MADHUSUDAN SAWDIA) ACCOUNTANT MEMBER Hyderabad, dated 14th November, 2025 Vinodan/sps Copy to: S.No Addresses 1 ACIT Circle-1, Aayakar Bhavan, Opp: Childrens Park, NR Peta, Kurnool 2 Suresh Constructions, 17-904 Rajendra Nagar, Guintakal Anantapur Distt. A.P 3 Pr. CIT - Kurnool 4 DR, ITAT Hyderabad Benches 5 Guard File By Order Printed from counselvise.com "