THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN
AND
THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY
I.T.T.A.No.246 of 2005
JUDGMENT: (Per the Hon'ble the Chief Justice Ujjal Bhuyan)
Heard Mr. B.Narasimha Sarma, learned Standing
Counsel for Income Tax Department appearing for the
appellant.
2. This appeal under Section 260A of the Income Tax
Act, 1961 (briefly, 'the Act' hereinafter), has been preferred
by the revenue as the appellant against the order dated
28.12.2004
passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'A', Hyderabad (Tribunal), in Interest Tax Appeal No.7/Hyd/99 for the assessment year 1995-96.
3. Assessee before us is the State Bank of India (SBI).
4. From a perusal of the assessment order dated 17.11.1997, we find that the aggregate interest tax of Rs.7,95,77,777.00 was collected from the borrowers and included in the gross interest offered to tax. 2 4.1 It is submitted that 3% of the aforesaid amount would be the disputed tax which comes to around Rs.24.00 lakhs.
5. 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.
6. In the instant appeal, tax effect 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 3 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 21.09.2022 vs