Commissioner of Income Tax-II V. M/s. Andhra Pradesh Mineral Development Corporation Ltd.

ITTA/94/2022

AI Insights

The case involves an appeal by the Commissioner of Income Tax against M/s. Andhra Pradesh Mineral Development Corporation Ltd. concerning the deduction of compensation paid to residents for clearance from a danger zone around a mining area, amounting to Rs. 92,83,934, classified as revenue expenditure. The appeal was heard by the High Court of Telangana, which found that the monetary value of the appeal did not meet the threshold set by the CBDT Circular No. 17 of 2019, leading to the rejection of the appeal without further consideration of the substantive issues.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 684618 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 24-08-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SRINARAYAN
• Assessee Lawyers: K MAMATA
• Keywords: CBDT Circular No. 17 of 2019; Income Tax Tribunal Appeal; Monetary limit; Deduction of compensation
• Section: 2604

Judgement Text

"[ 3386 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY, THE TWENTY FOURTH DAY OF AUGUST TWO THOUSAND AND TWENTY THREE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY INCOME TAX TRI BU NAL APPEAL No: 94 OF 2022 lncome Tax Tribunal Appeal Under Section 2604 of the lncome Tax Act, 1961 arising out of the order of the lncome Tax Appellate Tribunal, Hyderabad Bench 'A' Hyderabad, in ITA No.1001/Hyd/2006, for Assessment Year 2003-2004 dated:24-09-2009 preferred against the Order of the Office of the Commissioner of lncome Tax, (Appeals)-lll, Hyderabad, lTA.No.335/AV 2(3yClT (A)-lll/05-06, dated:23-08-2006, preferred against the Order of the Assistant Commissioner of lncome Tax, Circle -2(3), Hyderabad, P.A.N / G.l.R No. T-72i AAACT7391N, dated '18-01-2006. Between: Commissioner of lncome Tax-ll, HYDERABAD ...Petitioner AND M/s. Andhra Pradesh Mineral Development Corporation Ltd., C/o. M. Bhaskara Rao & Co., Chartered Accountants, 503, Golden Green Apartments, Erramanzil Colony, Hyderabad-O82. ...Respondent Counsel for the Appellant: M/S K. MAMATA, SC FOR lT DEPARTMENT Counsel for the Respondent: Mr. SRINARAYAN, Learned Counsel representing Mr. AV.A. SIVA KARTIKEYA The Court delivered the following: JUDGMENT T]IE HON'BLE SRI JUSTICE P.SAM KOSITY AND THE HON'BLE SRI JUSTICE LAXMI NARAYI A ALISH]9T,TY I.T.T.A. No.94 of 2022 JUDGMENT: (per t on'ble Si Jtt-str.e P.S,4]}, KoSI{Y,/ Heard Ms. K. Mamata, learned Senior Standing Cou::sel appearing for the appellant anc Mr. Srinarayan. learned Counsel represer tini] Mr. A.V.A. Siva Kartikeya, le rrned counsel appearing for the respondent. 2. Considerin i the submission made by learned coun sel for the appellant, we finc that the question of law proposed to be acjudicated upon in the instant ap1rc;rl was so far as the grant of deduction of cc,mpensation paid to the residents as palt of clearance from d;mger zcne around the mining area to a tune of Rs.92,83,934 /-, as r?venu{r expenditure is concerned. 3. Central Bo rrd of Direct Ta-xes (CBDT) has issued tlircular No. 17 of 2019 dt.08.O8.2O t9, had hxed the monetary limit for challengirrg the order passed by the Inc, rme Tax Appellate Tribunals at Rs. I .00 cro re and above. 4. Considerinlgthe issue raised by the appellant in the instant case, it is apparent that th: arnount involved in the preser:t appeal il; less than monetal/ Iimit prescribed vide aforesaid circular of the CBI)T ;.e. Circular No. 17 of 2O 19 dt.(18.08.20I9. 5. In view of r he same, the present appeal stanrls rejr:cted only on the ground of it bein11 below the monetary limit as per the afo:'eseLid circular. However, if the issue raised b1- thc appellant in thr instanl ap,peal comes -) within the exception under paragraph l0 of Circular No.3 of 201g, it would be open to thc Income Tax Dep;rrtment to seek revivai of . the appeal. No order as to costs. 6 Consequently, miscellaneous petitions pencling, if any, shall stand closed //TRUE COPY// SD/- B.S,CHIRANJEEVI JOINT REGISTRAR- @*-=' SECTION OFFICER To, 1. 2. 3. 4. 5. 6. The lncome Tax Appellate Tribunal, Hyderabad Bench 'A' Hyderabad. The Commissioner of lncome Tax , (Appeals)-lll, Hyderabad. The Assistant Commissioner of lncome Tax, Circle -2(3), Hyderabad. One CC to tvl/s. K. [/amata, SC FOR lT DEPARTMENT [OPUC] One CC to Sri A.V.A. Siva Kartikeya, Advocate [OPUC] Two CD Copies kam tJ PN, HIGH COURT DATED:24l08t2023 JUDGMENT lTTA.No.94 tl'2022 ITTA IS RE.IECTED I ) ) ( $1 ffil tu t^ :' >ulq t*' @l^,' \"r5=; ;)] s// / "