The Pr. Commissioner of Income Tax-2 Vs M/s. Epam Systems India… — Income Tax | Telangana HC (2025)

The Pr. Commissioner of Income Tax-2 Vs M/s. Epam Systems India… — Income Tax | Telangana HC (2025)

What the court decided

AI extract

Outcome

None for the appellant Revenue: the appeal is dismissed without costs and miscellaneous applications, if any, stand closed; the Income Tax Department retains the liberty to seek revival of the appeal if it comes within the exception of Circular No. 5 of 2024.

Issue for consideration

Whether the Revenue's appeal (ITTA No. 64 of 2024) should be dismissed on account of the tax effect being below the monetary limit of Rs. 2.00 crore prescribed by CBDT Circular No. 9 of 2024 for the Department to file appeals before the High Court.

Court's answer

The tax effect involved in the instant appeal is well below the monetary limit fixed by CBDT Circular No. 9 of 2024 (Rs. 2.00 crore) for the Income Tax Department to file an appeal before the High Court.

Ratio / Principle

The appeal filed by the Revenue is dismissed in terms of CBDT Circular No. 9 of 2024 dated 17.09.2024; however, if the appeal comes within the exception of Circular No. 5 of 2024, it would be open to the Income Tax Department to seek revival of the appeal.

Detailed headnote1 paragraphs

Income Tax Tribunal Appeal No. 64 of 2024 (High Court for the State of Telangana at Hyderabad, decision dated 02.07.2025; Coram: Justice P. Sam Koshy, authoring justice, and Justice Narsing Rao Nandikonda). The Revenue's appeal under Section 260-A of the Income Tax Act, 1961, against the order dated 31.08.2023 of the Income Tax Appellate Tribunal, Hyderabad Bench 'B' (ITA No. 189/Hyd/2016, Assessment Year 2011-2012), concerning M/s. EPAM Systems India Private Limited (formerly Alliance Global Services IT India Private Limited), was dismissed solely because the tax effect was well below the Rs. 2.00 crore monetary limit fixed by CBDT Circular No. 9 of 2024 dated 17.09.2024 (amending Circular No. 5 of 2024 dated 15.03.2024) for Departmental appeals before High Courts. The Court held that if the appeal falls within the exception of Circular No. 5 of 2024, the Department would be free to seek revival. No costs; pending miscellaneous applications stood closed. No precedent cases were cited or engaged with; merits of the tax dispute were not examined.

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13447 |

HIGH COURT FOR THE STATE OF TELANGANA AT HYEERABAD

WEDNESDAY,THE SECONO DAY OF JULY TWO THOUSAND AND TWENTY FIVE

PRESENT

THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND

THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA

INCOME TAX TRIBUNAL APPEAL NO: 64 OF 2024

lncome Tax Tribunal Appeal Under Section 2604 of the lncome Tax Act,1961 against the Order daled 3110812023 passed in ITA No. 189/Hyd/2016 for the Assessment Year 2O11-2012 on the file of the lncome Tax Appellate Tribunal, Hyderabad Bench'B', Hyderabad.

Between:

The Pr. Commissioner of lncome Tax-2, Hyderabad.

...APPELLANT

AND

M/s. EPAM Systems lndia Private Limited, (Formerly known as Alliance Global Services lT lndia Private Limited) Hyderabad (PAN No. AAACW2o12R)

...RESPONDENT

Counsel for the Appellant: MS. J.SUNITHA

Counsel for the Respondent: SRI DUNDU SASHANK MANMOHAN ALONG WITH SRI DARPAN KIRPALANI

The Court delivered the following: JUDGMENT

I

THE HON'BLE SRI JUSTICE P.SAM KOSHY

AND

THE HON'BLE SRI JUSTICE NARSING RAO^NANI)IKONDA

INCOME TAX TRIBUNAL APPEAL No.64 OF 2024

JTIDGMENT: EEr^{Hon'bleSri Justie P.SamKoshyl}

Heard Ms. J. Sunitha, learned Senior Standing Counsel for Income Tax, appearing on behalf of the appellant and Mr. Dundu Sashank Manmohzrn along with Mr. Darpan Kirpalani, learned counsel appearing on behalf of the respondent.

The instant appeal under Section 260-A of the Income Tax Act, 196 l, has been preferred by the Revenue as the appellant against the (t _^{order dated 31.08.2023 passedby the Income Tax Appellate Tribunal,} Hyderabad "B" Bench, Hyderabad, in I.T.A.No. 189/Hyd/2O16 for the Assessment Year 20 lI- 12.

Central Board of Direct Taxes (CBDT) has issued Circular No.9 of 2024 dated 17.O9.2024, amending the previous Circular No.5 of 2024 dated 15.03.2024, by further enhancing the monetary limits for filing appeals by the Income Tax Department before the Income Tax Appellate Tribunals, High Courts and Supreme Court as a measure for reducing litigation. In paragraph 2 of the said Circular, we find that

Page 2 of 3

the monetary limit fixed for filing an appeal before the High Court is

Rs.2.00 crore.

In the instant appeal, tax effect is well below the monetary limit.

Therefore, tlle appeal filed by the Revenue is dismissed in terms of the aforesaid Circular No.9 of 2024 dated L7.O9.2O24. However, if the appeal comes within the exception of Circular No.S of 2024, it would be open to the Income Tax Department to seek revival of the

appeal. No costs.

As a sequel, miscellaneous applications pending if any, shall stand closed.

SD/.N.CHANDRASEKHAR^RAO DEPUTY BEGISTRAR / //TRUE^COPY// sEcrgN oFFIcER^/

To,

The lncome^{Tax AppellateTribunal'HyderabadBench '8" Hyderabad'}

One CC^{to MS. J'SUNITHA, Advocate IOPUC]}

One^{CCto SRl. DUNDU SASHANK MANMOHANAdvocate IOPUCI}

TwoCDCoPbs

TPK

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HIGH COURT

DATED:0210712025

JUDGMENT

lTTA.No.64 of 2024

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ITTA IS DISMISSED

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