DCIT., CENTRAL CIRCLE-1(3), HYDERABAD V. C K ENTERTAINMENTS PRIVATE LIMITED, HYDERABAD

ITA 964/HYD/2025

AI Insights

The case involves appeals by the Revenue against the orders of the Commissioner of Income Tax (Appeals), Hyderabad, concerning the assessment years 2020-21 and 2016-17. The Revenue contended that the appeals should proceed despite the low tax effect, citing exceptions in the CBDT Circular. However, the tribunal found that the exceptions did not apply to the present case, leading to the dismissal of the appeals. The tribunal emphasized that the issues raised are left open for examination in future proceedings if necessary.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 783604 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Assessment Year: 2020-2021
• Appeal Filed On: 30-05-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

"आयकर अपीलीय न्यायाधिकरण में, हैदराबाद ‘बी’ बेंच, हैदराबाद IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad “B” Bench, Hyderabad श्री विजय पाल राि, माननीय उपाध्यक्ष एिं श्री मंजूनाथ जी, माननीय लेखा सदस्य SHRI VIJAY PAL RAO, HON’BLE VICE PRESIDENT AND SHRI MANJUNATHA G, HON’BLE ACCOUNTANT MEMBER आयकरअपीलसं./I.T.A.Nos.964 and 967/Hyd/2025 (निर्धारण वर्ा/ Assessment Years: 2020-21 and 2016-17) The Deputy Commissioner of Income Tax, Central Circle – 1(3), Hyderabad. Vs. C.K. Entertainments Private Limited, Hyderabad. PAN : AAECC5669A (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) करदाता का प्रतततितित्व/ Assessee Represented by : Shri Sanket Milind Joshi, C.A. राजस्व का प्रतततितित्व/ Department Represented by : Dr. Sachin Kumar, Sr.AR सुिवाई समाप्त होिे की ततति/ Date of Conclusion of Hearing : 04.11.2025 घोर्णध की तधरीख/ Date of Pronouncement : 07.11.2025 O R D E R PER MANJUNATHA G., A.M : These appeals filed by the Revenue are directed against the separate orders of Commissioner of Income Tax (Appeals), Hyderabad – 11, dated 15.03.2025 pertains to the assessment years 2020-21 and 2016-17, respectively. Printed from counselvise.com 2 ITA Nos.964 and 967/Hyd/2025 C.K. Entertainments Pvt. Ltd. 2. It is stated before us that the tax effect in these appeals are less than Rs.60 lakhs and, therefore, the Circular No.279 /Misc./M-74/2024-ITJ, dated 17th September, 2024 issued by the Central Board of Direct Taxes (CBDT) issued in amendment to Circular 5 of 2024 under Sec.268A(1) of the I.T. Act comes into play, wherein, the monetary limit for filing the appeals by the Revenue before the ITAT and various High Courts as well as Apex Court are revised with an object of the reducing the tax litigation. Vide para 2 of the said circular (supra) it is stated that in cases where the tax effect in the appeals to be filed before the Appellate Tribunal does not exceed Rs.60 lakhs appeals should not be filed. 3. Insofar as the written submissions of the Revenue dt.06.11.2025 in light of Para 3.2(b) and Para 6.2 of the Circular No.5 of 2024 dated 15.03.2024, in our considered view, the above exceptions provided in Para 3.2 are not applicable to the present case, because Para 3.2 specifically deals with filing of appeal by the Revenue and contesting the issues on merits, irrespective of the extent of monetary limits where the Revenue has contested some issues on meris irrespective of tax limit in Higher Judicial Forums like Hon'ble High Court and Hon'ble Supreme Court and Printed from counselvise.com 3 ITA Nos.964 and 967/Hyd/2025 C.K. Entertainments Pvt. Ltd. the said issue is not attained finality and further, to keep the issues alive, the Revenue filed an application u/s 158AB of the Income Tax Act, for deferral of other appeals to avoid filing of appeal in such cases. Further, when judicial finality is achieved in favour of the Revenue in the ‘other case’, the appeal in ‘relevant case’ is contested on merits subsequent to the decision in the ‘other case’. Further, if the judicial outcome in the ‘other case’ is not in favour of the Revenue and is not accepted by the Department, appeal against the same may be contested on merits in the ‘other case’ irrespective of the extent of monetary limits to arrive at judicial finality. In the present case, the Revenue has failed to file any evidences to bring the present case in light of Para 3.2 of the above Circular No.5 of 2024 dated 15.03.2024, 4. Insofar as Para 6.2 referred to by the Revenue in their letter dt.06.11.2025, in our considered view, once again the case of the assessee does not fall under Pra 6.2, because Para 6.2 specifically deals with filing of appeal in other assessment years where for one or two assessment years, the Revenue has not filed appeal on the ground of monetary limits specified in the CBDT Circular. Therefore, in our considered view, the arguments of the Revenue Printed from counselvise.com 4 ITA Nos.964 and 967/Hyd/2025 C.K. Entertainments Pvt. Ltd. that, the case of the assessee falls under exceptions provided under Circular No.5/2024 dt.15.03.2024, is incorrect and cannot be accepted. Thus, taking a note of CBDT Circular No.(F.279/Misc./M074/ 2024-ITJ), dated 17/09/2024 and considering the fact that the tax effect in the instant appeals are less than Rs.60 lakhs, the captioned appeals deserves to be dismissed as not pressed/not maintainable. However, we make it clear that, the issues raised in the instant appeals are left open to be examined in the appropriate proceedings, if arises, in future. At the same time, we also make it clear that, if the appeals fall in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for recalling the order, if so, advised. 5. Accordingly in the light of CBDT Circular No. No.(F.279/Misc./M074/2024-ITJ),dated 17/09/2024, the appeals filed by the Revenue stand dismissed. Printed from counselvise.com 5 ITA Nos.964 and 967/Hyd/2025 C.K. Entertainments Pvt. Ltd. 6. In the result, both the appeals filed by the Revenue are dismissed. Order pronounced in the Open Court on 7th November, 2025. Sd/- श्री विजय पाल राि (VIJAY PAL RAO) उपाध्यक्ष /VICE PRESIDENT Sd/- (मंजूिधथ जी) (MANJUNATHA G.) लेखा सदस्य/ACCOUNTANT MEMBER Hyderabad, dated 07.11.2025. TYNM/sps आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:- 1. निर्धाररती/The Assessee : C.K. Entertainments Private Limited, H.No.8-2- 293/K/332/G-1, Somanath Residency, Phase-3, Kamalapuri Colony, Hyderabad – 500073. 2. रधजस्व/ The Revenue : The Deputy Commissioner of Income Tax, Central Circle – 1(3), Hyderabad. 3. The Principal Commissioner of Income Tax (Central), Hyderabad. 4. नवभधगीयप्रनतनिनर्, आयकर अपीलीय अनर्करण, हैदरधबधद / DR, ITAT, Hyderabad 5. गधर्ाफ़धईल / Guard file आदेशधिुसधर / BY ORDER Sr. Private Secretary ITAT, Hyderabad Printed from counselvise.com "