THE COMMISSISONER OF INCOME TAX -III, HYDERABAD V. STATE BANK OF HYDERABAD

ITTA/246/2005

AI Insights

This case involves an appeal by the Commissioner of Income Tax against the State Bank of India (SBI) concerning an interest tax assessment for the year 1995-96. The appeal was based on the order of the Income Tax Appellate Tribunal, Hyderabad, which had previously decided on the matter. The main legal issue was whether the tax effect from the disputed amount, which was below Rs. 1.00 crore, warranted an appeal under the revised monetary limits set by the CBDT to reduce litigation. The court, after considering the submissions and the applicable circulars, decided to dismiss the appeal due to the low tax effect.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 727928 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 21-09-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: N R SIVA SWAMY
• Assessee Lawyers: B SARMA
• Keywords: Appeal Dismissal; Income Tax; Interest Tax; Monetary limits
• Section: 260A

Judgement Text

"IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD WEDNESDAY ,THE TWENTY FIRST DAY OF SEPTEIMBER TWO THOUSAND AND TWENTY TWO PRESENT THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HON'BLE SRI JUSTICE C.V. BHASKAR REDDY INCOME TAX TRIBU NAL APPEAL NO: 246 0F 2005 Appeal Under Section 260 A of the lncome Tax Act , 1961 aggrieved by the order in l.T.A. No. 7 / Hyd/99 dated 28-12-2004 on the file of the court of the lncome Tax Appellate Tribunal , Hyderabad Bench- A., Hyderabad preferred against the order of the Commissioner of lncome Tax ( Appeals ) , Hyderabad in Appeal No. 2O/Tr/DGSR / CIT (A) -U98-99 dated 11-01-1999 preferred against the order of the Deputy Commissioner of lncometax ( Assts)., special Range - 3, Hyderabad dated 17-'11'1997 in PAN / GIR No- S'74 Between: The Commissioner Of lncome Tax -lll, Tax-lll, Hyderabad. Hvderabad The Commissioner of lncome ..A.PPELLANT AND State Bank of lndia , Gunfoundry, Hyderabad . ( Cause tifle is amended as per Court order dated 31-0t-2018 in l.A.No. 1 of 2018 in i.i.i.A. uo. z+o of 2005 ) ...RESPoNDENT Counsel for the Appellant: SRl. B. NARASIMHA SARMA' SC fol l.T. Dept' Counsel for the Respondent: SRI N. R. SIVA SWAMY' ADVOCATE (NOT PRESENT) The Court made the following: ORDER I l I t THE HON'BLE THE CHIEF JUSTICE UJJAL BHTIYAN THE HON'BLE SRI JUSTICE C.V,BIIASKAR REDDY I.T.T.A.No.246 of 2OOS JUDGMENT: eet tE Han'ble the CtLieI Justice Uiiat Bhuaan) Heard Mr. B.Narasimha Sarma, learned Standing Counsel for Income Tax Department appe,aring for the appellant. 2. This appeal under Section 260A of tht: Income Tax Act, 196 1 (briefly, 'the Act' hereinafter), has been preferred by the revenue as the appellant against thr: order dated 28.12.2004 passed by the Income Tax Appellate Tribunal, Hyderabad Bench A', Hyderabad (Tribunal), in Interest Tax Appeal No.7 /}{yd/99 for the assessment year 1995-96. 3. Assessee before us is the State Bank of I edia (SBI). 4 . From a perus:rl of the assessment order dated 17.11.1997, we find that the aggregate in-erest tax of Rs.7,95,77,7 77.00 was collected from the borrowers and j includecl in the gross interest offered to tax. AND 4.1 It is submitted that 3o/o of the aforesaid amount would be the disputed tax which comes to around Rs.24.00 iakhs. 5. Central Board ol Direct Taxes (CBDT) has issued Circular No.17 of 2019, dated 08.08.2019, amending the previous Circular No.3 of 2018, dated ll.O7.2O1B, by further enhalcing the monetary limits for liling 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.OO crore. 6. In the instalt appeal, tax effect is well below the 7. Therefore, the appeal filed by the Department 1S dismissed in terms of the aforesaid Circular No.17 of 20 19, dated 08.08.2019. However, if the appeal comes within the exception under paragraph 1O of Circular No.3 of 2OlB, it monetarv limit. 2 t J would be open to the lncome Tax Departrnent to seek Misceiianeous applications pending, if any, shall stald closed. However, there sha-ll be no order as to costs. SD/-B.S.CH NJEEVI JOINT i/TRUE COPY// I L-': sEcTtoN o CE I. F I To . One Spare Copy 1 2 a .) 4 5 6 7 The lncome Tax Appellate Tribunal , Hyderzrbad Bench- A., Hyderabad The Commissioner of lncome Tax ( Appeals ) , Hyderabad The Deputy Commissioner of lncometax ( Assts)., Special Range -3, Hyderabad One CC to SRl. B NARASITVHA SARI ,{A, Advocate [OPUC] One CC to SRl. N. R. SIVA SWAIVY, Advocate tOpUCl Two CD Copies bs ; \"- I revival of the appeal. LY I l HIGH COURT DATED:21 10912022 JUDGM ENT ITTA.No.246 of 2005 DISMISSING THE I1'TA WIl'HOUT COSTS Y 1l:LAir, s .rl, AS, ./. c.' aa * C. lJr l-r lij .L - '.) ! - ll * a I I I i I i it t: "