DY. COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) – 3(1)(1), MUMBAI, MUMBAI vs. JEFFERIES SINGAPORE LIMITED , SINGAPORE

At the outset, it has been pointed out that the dispute raised in the Revenue’s appeal in A.Y.2016-17 is only with & 3043/Mum/2024 M/s. Jefferies Singapore Limited regard to Rs. 4,53,339/- and since the issue pertains to FTS where the rate of tax under the DTAA is 10%, therefore, the tax effect is only Rs.45,334/-. Similarly, in A.Y.2018-19 the disputed amount in the appeal filed by the Revenue is Rs.11,58,353/- and the tax effect is Rs.1,15,836/- .

Both the parties have agreed that the tax effect on the disputed issue is less than Rs.60,00,000/- which is a monetary limit prescribed by the CBDT vide Circular No.09/2024 dated 17/09/2024 for filing of the appeal, wherein the limit prescribed for filing of appeal by the department before the Tribunal has been capped at Rs.60,00,000/-. Admittedly here in this case the tax effect is less than Rs.60,00,000/- and accordingly, the appeals of the Revenue are dismissed in limine on account of low tax effect.

In the result, both the appeals of the Revenue are dismissed.