THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN
AND
THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY
I.T.T.A. No.67 of 2001
JUDGMENT: (Per the Hon'ble the Chief Justice Ujjal Bhuyan)
Heard Ms. K.Mamata Chowdary, learned Standing
Counsel for Income Tax Department appearing for the
appellant and Mr. M.Sridhar, learned counsel for the
respondent.
2. This appeal under Section 260A of the Income Tax Act, 1961, has been filed against the order dated 29.09.2000 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad (Tribunal) in I.T.A.No.348/Hyd/1999 for the assessment year 1995-96.
3. On 07.06.2001, the appeal was admitted on the following substantial questions of law:
"A) Whether on the facts and in the circumstances of the case, the Tribunal is justified in holding that the compensation of Rs.48,15,658/- paid by the assessee on account of breach of Agreement for 2 investment in the share capital of JDRC is a revenue expenditure?
B) Whether on the facts and in the circumstances of the case, the amount received on account of waiver of interest, which had been allowed as deduction in earlier years in terms of Sec.24(1)(vi) can be assessed in the year of waiver?
C) Whether on the facts and in the circumstances of the case, the Appellate Tribunal is justified in relying on the decision of Authority for Advance Ruling reported in 213 ITR 5122?"
4. In the hearing today, we have perused the assessment order dated 25.03.1998 and find therefrom that the total income of the respondent was determined at Rs.1,05,98,835.00 and quantum of tax to be paid was assessed at Rs.42,39,534.00.
5. We find that 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 3 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.
6. In the instant appeal, tax effect is of Rs.42,39,534.00, which is well below the monetary limit.
7. 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 07.09.2022 vs