Commissioner of Income Tax-Ii, Hyderabad Vs M/S. Patni Telecom… — Income Tax | Telangana HC (2025)

Commissioner of Income Tax-Ii, Hyderabad Vs M/S. Patni Telecom… — Income Tax | Telangana HC (2025)

What the court decided

AI extract

Outcome

Appeal of the Income Tax Department dismissed pursuant to CBDT Circular No.9 of 2024 dated 17.09.2024 owing to tax effect below the monetary limit; no order as to costs; pending miscellaneous petitions, if any, ordered to stand closed (paras 30-32); Department retains the option to seek revival if the appeal falls within the exception of Circular No.5 of 2024.

Issue for consideration

Whether the Revenue's section 260A appeal (ITTA No.506 of 2015) against the Income Tax Appellate Tribunal, Hyderabad Bench 'A' decision dated 25-04-2013 in ITA No.1846/Hyd/2012 (Assessment Year 2008-09, concerning M/s. Patni Telecom Solutions Pvt. Ltd.) should be prosecuted or dismissed, given that its tax effect falls below the monetary limit fixed under CBDT Circular No.9 of 2024 for filing appeals by the Income Tax Department before High Courts. +1 more

Court's answer

The appeal filed by the Department is dismissed in terms of CBDT Circular No.9 of 2024 dated 17.09.2024, because the tax effect in this appeal is well below the monetary limit fixed for filing appeals before the High Court.

Ratio / Principle

The tax effect in the instant appeal is well below the monetary limit fixed (Rs.2.00 crore per paragraph 2 of CBDT Circular No.9 of 2024) for filing appeals by the Income Tax Department before the High Court.

Key takeaways

If the appeal comes within the exception of Circular No.5 of 2024, it remains open to the Income Tax Department to seek revival of the appeal.ratio¶30
There shall be no order as to costs.ratio¶30

Detailed headnote1 paragraphs

High Court for the State of Telangana at Hyderabad - Income Tax Tribunal Appeal (ITTA) No.506 of 2015, appeal under section 260A of the Income Tax Act, 1961 preferred by the Revenue (Commissioner of Income Tax-II, Hyderabad) against the decision dated 25-4-2013 of the Income Tax Appellate Tribunal, Hyderabad Bench 'A', in ITA No.1846/Hyd/2012 for Assessment Year 2008-09 concerning the respondent assessee M/s. Patni Telecom Solutions Pvt. Ltd. (assessment order dated 31-10-2012 by ACIT, Circle 16(3), Hyderabad, PAN/GIR No. AACCA4255G). Judgment (dated 04-09-2025) per Justice P. Sam Koshy, bench including Justice Suddala Chalapathi Rao. Observing that the tax effect in the appeal is well below the Rs.2.00-crore monetary limit fixed in paragraph 2 of CBDT Circular No.9 of 2024 dated 17.09.2024 (which amended Circular No.5 of 2024 dated 15.03.2024) for Departmental appeals before High Courts, the Court dismissed the appeal in terms of that Circular, made no order as to costs, directed closure of pending miscellaneous petitions, and stated that the Department may seek revival if the appeal falls within the exception of Circular No.5 of 2024.

[^348e I

IN THE HIGH COURT FOR THE STATE^{OF TELANGANA} AT HYDERABAD

THURSDAY, THE FOURTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY^FIVE

PRESENT

THE HONOURABLE SRI JUSTICE P.SAM^KOSHY AND

THE HONOURABLE SRI JUSTICE SUDDALA CHALAPATHI^RAO

INCOME TAX TRIBUNAL APPEAL^{NO: 506 OF 2015}

Appeal under section 260A of the lncome^{Tax Act, 1961 againstthe order} dated 25-4-2013 in ITA NO.^{1846/Hyd/2O12 on the file of the lncomeTax} Appellate Tribunal, Hyderabad Bench^{'A', Hyderabad for the Assessment year} 2008-2009, preferred against the Assessment^{Order dated31-10-2012in} PAN/GlR No. AACCA4255G on the^{file of the Assistant Commissioner of lncome} Tax, Circle 16(3), Hyderabad.

Between:

Commissioner of lncome Tax-ll, HYDERABAD

...APPELLANT

AND

M/s. Patni Telecom Solutions Pvt.^Ltd., lV^{Floor,MaximumsTowers-B,} Raheja Mind Space, Software Units^{Layouts,Mahdapur,Hyderabd-500081.}

...RESPONDENT

Counsel for the Appellant: Ms.^{B. Sapna Reddy,Standing Counsel for lT}

Counsel for the Respondent: Sri^{M Naga Deepak}

The Court delivered the following:^JUDGMENT

t

THE HONOTIRABLE, SRT JUSTICE P.SAM KOSHY ANT) THE HONOURABLE SRI JUSTICII SIIDDALA CTTA LAPATHI RAO

ITTA No.506 OF 2015

JUDGMENT: Qtcr Ilon'bla Sri.lu.rtir-e^p.Sam Koshy)

Heard Ms. B.Sapna Reddv, lear,ed Seni.r Standing counsei tbr the lncome^'l'ax Department for the appellant and Mr. M.Naga l)eepak, Iearned counsel for the respondent. perused the record.

'l-his appeal unde. Section 260A of the Income Tax Act, 196r, has been preferred by the Revenue as the appellant against tlre order dated 25.04.2013 passed by the Income Tax Appellate l-ribLrnal, Hl,derabad Bench^,A,, Flyderabad, in I. f.A.No.l846/Ftyd 12012 fbr rhe Assessment year 2008-09.

central Board of Direct Taxes (CBDT) has issued Circular No.9 of 2024 dated 17.09.2024, amending the previous circular No.5 of 202,1 dated 15.03 .zoz4, by further enhancing rhe monetary lirnits for filing appeals by the Income Tax Department before the lncome Tax Appellate Tribunals, High courts and Supreme court

2

as a measure for reducing litigation. In paragraph 2 of the said

Circular, we find that the monetary limit fixed for^{filingan appeal} belore the l-ligh Court is Rs.2.00 crore

tn the instant appeal, tax effect is well below^{the rnonetary}

limit.

Therefore, the appeal filed by the Department^{is dismissedin} tenns of the aforesaid Circular No.9 of 2024^{dated 17.09.2024.} Flowever, il' the appeal conles within the^{exception of Circular} No.5 of 2024, it would be open to^{the lncome Tax Departmentto} seek revival of the appeal.^'Ihere shall^{be no order as to costs}

Consequently, miscellaneous^{petitions pending, if any, shall}

stand closed.

Sd/. P. CH. NAGABHUSHAMBA REGISTRAR

//TRUE COPY//

N OFFICER

To,

The lncome Tax Appellate Tribunal, Hyderabad Bench 'A', Hyderabad 2. The Assistant commissioner of lncome Tax, circre 16(3), Hyderabad. 3. one cc to Ms. B. sapna Reddy, standing counselfor lr lopucl 4. One CC to Sri M. Naga Deepak, Advocate [OpUC]

Two CD Copies

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HIGH COURT

DATED: 0410912025

JUDGMENT

ITTA.No.506 of 2 0 15

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