Dismissed¶33

The Principal Director of Income Tax (Investigation) v. Mr. Prasad Nimmagadda

Telangana HC9 Sept 2025ITTA/140/2025

Case brief

AI extract

What is this about?

Telangana High Court, ITTA No. 140 of 2025, decided 09/09/2025 (Justice P. Sam Koshy, Justice Suddala Chalapathi Rao). Appeal under Section 260A, Income Tax Act, 1961 by Principal Director of Income Tax (Investigation) against ITAT Hyderabad Benches 'B' order, AY 2019-20. Tax effect Rs.10,00,000/- (penalty under Section 43, Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015), below Rs.2 crores monetary limit under Circular No.5 of 2024; appeal dismissed as not sustainable; pending miscellaneous applications closed. Keywords: low tax effect dismissal, Circular No.5 of 2024 monetary limit, Black Money Act penalty, ITTA.

What did the court decide?

None; the appeal stands dismissed and miscellaneous petitions pending, if any, stand closed ¶33

The Principal Director of Income Tax (Investigation) Vs Mr… — Income Tax | Telangana HC (2025)

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IN THE HIGH COURT FOR 1-I{E STATE OF TELANGANA AT HYDERAtsAD

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TUESDAY, THE NINI H DA./ OI: SEPTEMBER T\AiO THOUSI\I.JD ANt] TWENTY FIVE

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PRESENT

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THE HONOURABI..F- sRI .II.JSTICE P.SAM KOSHY AND

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THE HONOURAI3LE SRI JUSTICE SUDDALA CHALAPATHI RAO

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INCOME TAx TRIBUNAL APFEAL. NO: 140 OF 2025

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lncome Tax Tribunal Appeal L.Jnder Sler.tion 2604 of the lncome Tax Act,1961 \ against the Order dated^"'6.01 .202!t rxrss;r-,,; ii' Et'/tA.2lHydl2024 for the Assessment Year 2019-20 on the file of the lncor-re 121^r.poellate Tribunal, Hyderabad Benchs 'B', Hyderabad.

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Between:

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The Principal Director ')f lnccrner [;r (lnvestigation), Aayakar^. Bhawan, Hyderabad.

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...Appellant

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AND

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Mr. Prasad Nimmagadda, l)lot No 2421P-, ft.oad No 76, Jubilee Hills, Hyderabad - 5OO 033 PAN - ABKPN3OTSN

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...Respondent

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Counsel for the Appellant : Mr. N. Praveen Reddy Standing counsel for lncome Tax Departmenl

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Counsel for the Respondent :

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The Court made the following: ORDER

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--=

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THE HONOURABLE SRI JUSTICE^P.SANIKOSHY AND THE HONOURABLE SRI- JUS'IIC^[, SUDDALA CHALAPATHI^RAO

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I.T.T.A.No.140 OF 2025

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ORDER,^(per Hon'ble Sri Justice P.Sam Koshy)

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Heard Mr. N.Praveen Reddy, Senior Standirrr^(lounsel1br

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the Income Tax Department appearing for the appelL:rrt

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In the course of the hearing, it has been^{foLrrr, I thar thc tax}

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effect arising in the instant case is only Rs.10,00,000^{- ( l'en Lakhs} Only) that too by way of penalty imposed^{by thc ar,rellantunder} Section 43 of Black Money (Undisclosed Foreign lncome and Assets) and Imposition of Tax Act, 2015. Hovr'cr t'r.^{perusal of} Circular No.5 of 2024, where the monetary limit firccl by^the department in the course of preferring an apDeal beli:r,:^{thc I-|TA's,} High Courts md Supreme Court has been raised frolr^{lts. I crorc to} Rs.2 crores. We find that the tax effect in instarrt casc is only Rs.10,00,000/- which is much below the monetat)'lilrit^prcscribed under the sairl Circular.

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