Itta/67/2001 Of Comm.of Income Tax,Ap -I,Hyderabad v. M/S.lakshmi Builiders,Hyd

IN THE HIGH COURT FOR THE STATE OF AT HYDERABAD WEDNESDAY, THE SEVENTH DAY OF SEPTEIMEERTWO THOUSAND AND TWENTY TWO PRESENTTHE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYANANDTHE HONOURABLE SRI JUSTICE C.V. BHASKAR REDDY |.T.T.A. NO: 67 OF 2001 Appeal under Section 260-4 of the lncome Tax Act, [1961 ], [against Order ][of]lncome Tax Appellate Tribunal, Hyderabad Bench -A [Hyderabad ][in ] No.348/Hyd/1999 dated 29-09-2000 for Assessment [Year ][1995-1996 ][preferred]against the Order of the Commissioner of [Income ][Tax (Appeals), ][Hyderabad ][dated]2510211999 in ITA No.68/AC-1 [(1) ]/ClT [(A)-ll ]98-99 [preferred against the order of ][the]Asst. Commissioner of lncome Tax, Circle [-1('1 ]), [Hyderabad ][dated ][25103/1998 ][in]PAN/ GIR No.L-306/SR. 3 Between: Commissioner of lncome Tax, AP -1, Hyderabad. ...APPELLANT AND ft//s.Lakshmi Builders, 9094, Raghava Ratna [Towers, ][Chirag ][Ali Lane, ][Abids,]HYderabad' ...RESP.NDENT For the Appellant : Ms. K.MAMATA CHOWDARY,SC for l.T.DePt., Forthe Respondent : sRl M.SRIDHAR [CHALLA GUNARANJAN']Advocate The Court delivered the following: JUDGMENT \ THE HON'BLE THE CHIEF JUSTICE UJJAL BHITYANANDTHE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY I.T.T.A. No.67 of 2OOl JUDGMENT: 1)er [rhe ][Hor'ble ][tht ][Ctriel ][Justice ][UtaI ][Bhusarl)] Heard Ms. K.Mamata Chowdary, learned StaldingCounsel for Income Tax Department appearing for theappellant and Mr. M.Sridhar, learned counsel for therespondent. 2. This appeal under Section 260A of the Income TaxAct, 196 1, has been filed against the order dated29.O9.2OOO passed by the Income Tax Appellate Tribunal,Hyderabad Bench ts', Hyderabad (Tribunal)1nLT.A.No.34tl lHyd/1999 for the assessment year 1995-96. 3. On 07.06.2001, the appea.l was admitted on thefollowing substantial questions of iaw: "A) Whether on the facts and in thecircumstances of the case, the Tribunal is justified inholding that the compensation of Rs.48,15,658/- paidby the assessee on account of breach of Agreement for investment in t]le 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(l)(vi) ][can]be assessed in the Year [of waiver?] C) Whether on the lacts and [in ][the]circumstances of thc [case, ][the ][Appellate ][Tribunal ][is]justified in relying on the decision of Authority [for]Advance Ruling reported [in213 ][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]ll.O7.2Ot8, by further enhancing [the ][monetar5r ][limits ][for]Iiling appeals by the Income [Tax ][Department before ][the]Incorire Tax Appellate Tribunals, [High Courts ][and ][Supreme] Court as a measure for reducing litigation. in paragraph 2ol the said circular we find that the monetary limit flxed forfiling al appeal before the High Court is Rs.1.0O crore. 6. In the instant appeal, tax effect is of Rs.42,39,534.00,which is well below the monetaqz limit. 7. Therefore, the appeal filed the by Department isdismissed in terms of the aforesaid Circular No. 17 of 2019,dated 08.08.2019. However, if the appeal comes within theexception under paragraph 10 of circular No.3 of 20 rg, itwould be open to the Income Tax Department to seekrevival of the appeal. Miscellaneous applications pending, if any, sha_llstand closed. However, there shall be-no order as to costs.stand closed. However, there shall be-no order as to costs. Court as a measure for reducing litigation. in paragraph 2ol the said circular we find that the monetary limit flxed forfiling al appeal before the High Court is Rs.1.0O crore. 6. In the instant appeal, tax effect is of Rs.42,39,534.00,which is well below the monetaqz limit. 7. Therefore, the appeal filed the by Department isdismissed in terms of the aforesaid Circular No. 17 of 2019,dated 08.08.2019. However, if the appeal comes within theexception under paragraph 10 of circular No.3 of 20 rg, itwould be open to the Income Tax Department to seekrevival of the appeal. Miscellaneous applications pending, if any, sha_llstand closed. However, there shall be-no order as to costs.stand closed. However, there shall be-no order as to costs. Sd/.B.S.CHIRANJEEVIJOINT REGISTRAR//TRUE COPY/I|.'(.pToSECTION OFFICER2. 1. The lncome Tax Aooeltate Trilrnal,. Hyderabad Bench _A, Hyderabad4. 3. One The The Commissionei 6f tncome Tax Assistant Commissione.or CC to Ms. K.Mamata Ct o*Ojry, incbrfi tnppeiisi SCToi 5-iri1' i.i."O"prrtm"nt, ci[j"'_r u-vaJiaoaa( 1 ), Hyderabad.6. I. 9n" Two CD [Ce ][to Sri ]Copies[chala ][Gunaranj;;, ]X;"di; icie"u"irtOpUCl 7. One Spare Copy Kjt\''\> I HIGH COURTDATED:07109t2022 JUDGMENTITTA.No.67 of 2001 DISMISSING THE ITTA WITHOUT COSTS. z4^-.,ALTAI(l2 B [ri,T ]2n22