THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN
AND
THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY
I.T.T.A. No.90 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 31.05.2002 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad (Tribunal) in I.T.A.No.610/Hyd/2000 for the assessment year 1997-98.
3. In the appeal, the following substantial questions of law have been proposed:
"A) Whether the Appellate Tribunal is justified in holding that 'net interest' and not 'gross interest' should be deducted from 'business profit' for the purpose of computation of relief U/s. 80HHE of the I.T.Act ? B) Whether the Appellate Tribunal is justified in holding that net interest alone should form the basis for 2 computation of 'business profit' without there being a finding about the nexus of interest receipts and interest payments ?
4. On 14.07.2003, the appeal was admitted.
5. In the hearing today, we have perused the assessment order dated 30.03.2000. We find therefrom that the taxable income of the respondent was determined at Rs.89,63,930.00 and quantum of tax to be paid was assessed at Rs.22,55,320.00.
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.22,55,320.00, which is well below the monetary limit. 3
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