Itta/90/2003 Of Commssr.of Income Tax-Ii,Hyd v. Infotech Enterprises Ltd.hyd

IN THE HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD WEDNESDAY, THE FOURTEENTH DAY OF SEPTEIVBERTWO THOUSAND AND TWENTY TWO PRESENTTHE HONOURABLE THE GHIEF JUSTICE UJJAL BHUYANANDTHE HONOURABLE SRI JUSTICE C.V. BHASKAR REDDY l.T.T.A. NO: 90 OF 2003 lncome Tax Tribunal Appeal under Section 260(4) of the lncome Tax Act,'1961 against the order of the lncome Tax Appellate Tribunal, Hyderabad Bench 'B'Hyderabad in ITA No.610/Hydl2OOO, for assessment year 1997-98 dated 3110512002preferred against the Order of the Commissioner of lncome Tax (Appeals)-lV,Hyderabad, Appeal No,94/DC-7(4)lClr (A) lV/200-01 dated 04/08/2000 preferredagainst the Order of the Deputy Commissioner of lncome Tax Ctcle -7(4),Hyderabad PAN/GlR No.1-71lDCIT 7(4) Hyderabad dated 30/03/2000. Between: Commissioner of lncome Tax-ll, Hyderabad ...APPELLANT/ RESPONDENT AND lvl/s. lnfotech Enterprises Ltd., PIot No.42, Nagarjuna Hills, Punjagutta, Hyderabad. ..,RESPONDENT/ APPELLANT For the Appellant : SRI B.NARASIMHA SARMA, REP. FORMS. K.MAMATA CHOWDARY, Sr. SC for l.T.Department For the Respondent : SRI CHALLA GUNARANJAN, Advocate The Court delivered the following: JUDGN/ENT / I HON 'BLE THE [CHIEF.][ JUSTICE UJJAL][ BHIIYAN]ANDTHE HON'BLE [STICE C.V.BHASXAR REDDY]I.T.T.A. No.90 of [2OO3] JUDGMENT:(Per the Haft'bte the Chief [Justice ][Ujjal ] [gan)] Heard Mr. [B.Narsimha ][Sarma, learned ][counsel]Ms. [K.Mamata ][Chowdary, ][learned ][Senior]representing Counsel [for ][Income ][Tax Department ][appearing ][for]Standing the appellant [and ][Mr. ][Chal1a ][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]Income [Tax ][Appellate ][Tribunal, ][Hyderabad]passed by the Bench ts', Hyderabad [(Tribunal) ][in ][I'T'A'No'6lOlHydl2OOO] for the assessment Year [7997 -98 ]['] 3In 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 ] [T'Act ][?]B) Whether the [Appellate ][Tribunal ][is ][justifier! ][in]holding that net [interest ][alone ][should ][form ][the basis ][for] \ computation of 'business profit' without there being afinding about the nexus of interest receipts and interestpayments ? 4. On 14.O7.2003, the appeal was admitted. 5. In the hearing today, we have perused the assessmentorder dated 30.03.2000. We find therefrom that the taxableincome of the respondent was determined at Rs.89,63,930.00and quantum of tax to be paid was assessed atRs.22,55,320.00. 6. Central Board of Direct Taxes (CBDT) has issuedCircular No.17 of 2019, dated 08.08.2019, amending theprevious Circular No.3 of 2018, dated ll.O7.2Ol8, by furtherenhancing the monetary limits for fiiing appeals by theIncome Tax Department before the Income Tax AppellateTribunals, High Courts and Supreme Court as a measure forreducing litigation. In paragraph 2 of the said circular wefind that the monetary limit fixed for Iiling an appeal beforethe 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.Rs.22,55,320.00, which is well below the monetary limit. \ 8. Therefore, the appeal filed by the Department1Sdismissed 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 2018, itwould be open to the Income Tax Department to seek revivalof the appeal. Miscellaneous applications pending, if any, shall standclosed. However, there shall be no order as to costs. Sd/-K,SRINIVASAoJOINT REGIRAR//TRUE COPY' SECTION OFFICER 7 . In the instant appeal, tax effect is of Rs.22,55,320.00, which is well below the monetary limit.Rs.22,55,320.00, which is well below the monetary limit. \ 8. Therefore, the appeal filed by the Department1Sdismissed 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 2018, itwould be open to the Income Tax Department to seek revivalof the appeal. Miscellaneous applications pending, if any, shall standclosed. However, there shall be no order as to costs. Sd/-K,SRINIVASAoJOINT REGIRAR//TRUE COPY' SECTION OFFICER ToIThe lncome Tax Appellate [Tribunal, Hyderabad Bench 'B' ][Hyderabad]The Commissioner of lncome [Tax (Appeals)-lV, ][Hyderabad.]3The Deputy Commissioner of [lncome Tax, Circle-7(4),-Hyderabad.]4One CC to'Ms. K.Mamata [Chowdary, Advocate ]IOPUC]One CC to Sri Challa [Gunaranjan, Advocate ] 6Two CD Copies7One Spare CopyKjus" HIGH COURT DATED:1410912022 JUDGMENTITTA.No.90 of 2003 DISMISSING THE ITTA WITHOUT COSTS. //.v'2s[$ti ][?]