Telangana High Court
The Commissioner Of Income Taxiii vs M/S.Incon Engineering P Ltd on 14 September, 2022
Bench: Ujjal Bhuyan, C.V. Bhaskar Reddy
THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN
AND
THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY
I.T.T.A. No.251 of 2003
JUDGMENT: (Per the Hon'ble the Chief Justice Ujjal Bhuyan)
Heard Mr. B.Narsimha Sarma, learned counsel
representing Ms. K.Mamata Chowdary, learned Senior
Standing Counsel for Income Tax Department appearing for
the appellant and Mr. Challa Gunaranjan, learned counsel
for the respondent.
2. This appeal under Section 260A of the Income Tax
Act, 1961, has been filed against the order dated 11.03.2003
passed by the Income Tax Appellate Tribunal, Hyderabad
Bench 'A', Hyderabad (Tribunal) in I.T.A.No.1286/Hyd/1995
for the assessment year 1991-92.
3. In the appeal, the following substantial questions of law
have been proposed:
"A) Whether on the facts and in the circumstances of
the case, the Appellate Tribunal is justified in holding that
Accounting Standard-7 prescribed by Institute of
Chartered Accountants would be appropriate and
applicable even in relation to execution of turnkey projects
of engineering contracts of a shorter duration ?
B) Whether the Appellate Tribunal is justified in
recording the finding that the method of accounting system
maintained by the assessee is not correct, notwithstanding
the assessee adopting inapplicable AS-7 to an engineering
contract of a shorter duration ?
C) Whether the findings of the Appellate Tribunal in
this behalf are based on material on record ?
D) Whether the Appellate Tribunal is justified in
holding that rejection of books of accounts is impermissible
merely because the assessee had maintained accounts in
accordance with AS-7 consistently?
4. On 15.12.2003, the appeal was admitted.
5. In the hearing today, we have perused the assessment
order dated 23.03.1994. We find therefrom that the taxable
income of the respondent was determined at Rs.4,17,419.00
and quantum of tax to be paid was assessed at
Rs.2,72,249.00.
6. Central Board of Direct Taxes (CBDT) has issued
Circular No.17 of 2019, dated 08.08.2019, amending the
previous Circular No.3 of 2018, dated 11.07.2018, 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 the monetary limit fixed for filing an appeal before
the High Court is Rs.1.00 crore.
7. In the instant appeal, tax effect is of
Rs.2,72,249/-, which is well below the monetary limit.
8. Therefore, the appeal filed by the Department is
dismissed in terms of the aforesaid Circular No.17 of 2019,
dated 08.08.2019. However, if the appeal comes within the
exception under paragraph 10 of Circular No.3 of 2018, it
would be open to the Income Tax Department to seek revival
of the appeal.
Miscellaneous applications pending, if any, shall stand
closed. However, there shall be no order as to costs.
______________________________________
UJJAL BHUYAN, CJ
______________________________________
C.V.BHASKAR REDDY, J
14.09.2022
Lur
