The Commissioner of Income Tax, V. M/s. Era Software Systems (P) Limited,

ITTA/596/2006

AI Insights

This case involves an appeal by the Commissioner of Income Tax, Hyderabad -II against the order of the Income Tax Appellate Tribunal, Hyderabad, which was in favor of M/s. Era Software Systems (P) Limited. The appeal was under Section 260A of the Income Tax Act, 1961, concerning the assessment year 1999-2000. The primary legal issue was whether the appeal should proceed given the monetary limits set for litigation by the CBDT. The court referenced CBDT Circular No. 17 of 2019, which amended previous circulars to enhance the monetary limits for filing appeals to reduce litigation. The court found that the tax effect in this case did not meet the threshold for appeal as stipulated in the circular.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 720158 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 02-08-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: N R SIVA SWAMY
• Assessee Lawyers: J V PRASAD
• Keywords: Appeal; CBDT Circular; Income Tax; Monetary limit
• Section: 260A

Judgement Text

"[3386 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD WEDNESDAY, THE SECOND DAY OF AUGUST TWO THOUSAND AND TWENTY THREE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE A. LAXMI NARAYANA INCOME TAX TRIBUNAL APPEAL No: 596 OF 2006 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 'B' Hyderabad, in ITA No.489/Hyd/03, for Assessment Year '1999-2000 dated:27 -09-200 5 preferred against the Order of the Commissioner of lncome Tax , (Appeals)-ll, Hyderabad, lTA.No.31/ClT(A)-ll/02-03, dated:9-12-2002, preferred against the Order of the Assislant Commissioner of lncome Tax, Hyderabad, P.A.N / G.l.R No. E. 253, dated 06-03-2002. Between: The Commissioner of lncome Tax,, Hyderabad -ll ...Appellant AND M/s. Era Software Systems (P) Limited, 1't Floor, Plot No. 50, Srinagar Colony, Hyderabad. ...Respondent Counsel for the Appellant: SRI J.V. PRASAO, SC FOR INCOME TAX Counsel for the Respondent: SRI N.R. SIVASWAMY The Court delivered the following: JUDGMENT THE HON'BLE SRI JUSTICE P.SAM KOSITY AND THE HON'BLE SRI JUSTICE A. LAXMI NARAYANII I.T.T.A. No. 596 of 20O6 JUDGMENT:1pe r Hon'ble Si Justice 4-SAM KOSfiy) Heard Sri J.V.Prasad, learned Senior Stalcling Counscl appearing for the appellarlt 2. This appeal under Section 260A ol the Income Tax Act, 1961, has been preferred by the Revenuc as thc appellant against the order dt.27.O9.2OOS passed by the lncome Tar Appellate Tribunal, Hyderabad Bench 'B', Hyderabad, in I.T.A.No.489 lHydlo3 lor the Assessment year 1999-2000. 3. Central. Board of Direct Ta_xes (CBDT) has issued Circulu No.17 of 20 19 dt.08.08.2O 19, amending the previous Circular No_lt of 2O lg dt.l I-07.2O18, by further enhancing the monetary limits for hling appeals by the Income Tax Department before the Income Tax Appeuate Tribunals, High Courts and Supreme Court as a measure for reducing lir_igation. In paragraph 2 of the sard Circular, we hnd that the monetar), limit fixed for frling an appeal before the High Court is Rs. LOO crore. 4 In the instant appeal, tax effect is rvell below the monetal/ limit 5. Therefore, the appeal filcd by the Department is dismissed rn terms of the aforesaid Circular No. l7 of 2019 dt.08.08.2O19. However, if the appeal comes within the exception under paragraph lO of Circular No.3 :f 201g, it I I 2 would be open to the lncome Tax Dcpartment to seek reviva] of the appcal No order as to costs Consequently, misccllaneous petitrons pending, if any, shall stand 6 I il closed- To, 6. Two CD CoPies kam BM //TRUE COPY// Sd/.K.SRINIVASA RAO JOINT REGISTRAR ,.: : IJD SECTION OFFICER 1. The lncome-Tax Appellate Tribunal' Hyderabad Bench ' B ' Hyderabad' 2. The Commissioner of lncome Tax ' (Appeals)-ll' Hyderabad' 3. The Assistant Commissioner of lncome Tax' Hyderabad' 4. One CC to SRI J.V' PRASAD' SC FOR INCOME TAX IOPUCI 5. One CC to SRI N.R' SIVASWAMY' Advocate [OPUC] & HIGH COURT DATED:0210812023 JUDGMENT ITTA.No.596 of 2006 o !) 0 B sEP 2ul O,, ut4 1t e STAfEf o ( 9 o ), ' I lr _-i THE APPEAL IS DISMISSED Gf\"?\"' .N. ---'a'- + qFs "