In its appeal, the Maharashtra government challenged the session court's order convicting Lalit D'Souza (40) on a lesser count of 'causing grievous hurt', while clearing him of the attempt to murder charge.
A similar appeal was also moved by his sister Lorna D'Souza.
Both the appeals were admitted by the bench of Justices A M Khanvilkar and A R Joshi, and will come up for hearing in due course of time.
On February 1, the sessions court had cleared Lalit of the "attempt to murder" charge (Section 307 of IPC), but found him guilty for "causing grievous hurt" (Section 326 of IPC).
The session court had handed him a three-year jail term.
Lalit, who was granted bail, then approached the High Court, saying he had opened fire at Lorna only in "self defence" and was being erroneously convicted by the lower court.
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Earlier while hearing Lalit's appeal, the court ordered him to file a reply over why his punishment should not be enhanced.
The two siblings have been involved in a dispute over their late father's property since 2003.
On October 28, 2007, Lalit repeatedly shot at Lorna over a car parking dispute at Sainara building in Cuffe Parade, where the family owns a 2,000 sq ft apartment.