TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Supreme Court dismisses petitions citing 'low tax effect' per Department Circular; Interest Tax Act included in 'Et Cetera.'.</h1> <h3>COMMISSIONER OF INCOME TAX CHENNAI - III Versus M/s SHRIRAM INVESTMENTS LTD.</h3> The SC dismissed the Special Leave Petitions due to 'low tax effect,' referencing Department Circulars intended to limit litigation. The Court determined ... Maintainability of petitions on the issue of ‘low tax effect' - threshold limit for filing the appeal under Interest Tax Act - HELD THAT:- Clause 5 of the Circular instruction dated 27.03.2000 though primarily applicable to cases under the Income Tax Act expressly mentions by way of example, wealth tax, gift tax and estate duty and insofar as the taxes which are not mentioned, use of the word “etc.” is significant. This implies that Circular instruction has mentioned only a few of the direct taxes which would be coming within the scope and ambit of the said Circular but insofar as those Acts, which are not specifically mentioned, the expression “etc.” is significant. We find that the said Circulars would also cover the Interest Tax Act as it is direct tax and can be read within the scope and ambit of the word “Et Cetera'. Admittedly, the Special Leave Petitions assail orders where the threshold limit is less than Rs.2,00,00,000/- (Rupees Two Crores). Special Leave Petitions are dismissed owing to ‘low tax effect’. Issues involved: Maintainability of petitions based on 'low tax effect' as per Circulars issued by the Department.Summary:The respondent's counsel objected to the maintainability of the petitions based on the issue of 'low tax effect,' citing Circulars from various years. The petitioner's senior counsel argued that the threshold limit for filing appeals under the Circulars should not apply to the case concerning the Interest Tax Act. The Court considered the Circulars issued by the Department to limit litigation before Courts. Referring to a specific clause in a Circular instruction, it was noted that the Circulars cover various direct taxes, including those not explicitly mentioned. The Court found that the Interest Tax Act falls within the scope of the Circulars under the term 'Et Cetera.' Consequently, the Special Leave Petitions were dismissed due to 'low tax effect.' Pending applications were disposed of accordingly.
TaxTMI 
TaxTMI 
