The Bombay High Court allowed the withdrawal of appeal on disputed income tax claim being valued at “Nil”, thereby granting relief to Abu-Dhabi Commercial Bank Ltd.
Abu Dhabi Commercial Bank (ADCB), the petitioner is a subsidiary of Abu Dhabi Investment Council, is a provider of traditional and Islamic banking solutions to individuals, high net worth individuals, government, and corporate customers. The bank also provides other services such as Foreign Exchange, Islamic banking, brokerage, cash management, Sukuk trading etc. ADCB is headquartered in Abu Dhabi, the UAE.
The Division Bench of Justices Kamal Khata and Dhiraj Singh Thakur observed that “On perusal of the papers, it appears that the disputed claim in the appeal is valued at “Nil”. In our opinion, this would be covered under Circular No. 17 of 2019 dated 8th August, 2019.”
Circular No. 3/2018 dated 11th July 2018 has been replaced by Circular No. 17/2019 dated 8th August 2019 to enhance Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court for reducing litigation.
The Circular mentioned that: –
· The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If, in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit
· Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year, no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit
· In case where a composite order/ judgement involves more than one assessee. each assessee shall be dealt with separately
The Bench further noted that “In view of this, the Counsel seeks to withdraw the appeal. The appeal stands dismissed as withdrawn with liberty to approach the Court again for reviving the present appeal in case the Revenue for any plausible reasons finds that the appeal was not to be withdrawn as the disputed claim in the appeal is not covered under the aforementioned circular.”
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