AI Drafter 
TaxTMI 
TaxTMI 
2014 (1) TMI 695
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....ome-Tax Act, 1961 (hereinafter referred to as 'the Act') for the assessment year 2006-07 vide his order dated 26.12.2008. 2. The only issue in this appeal of Revenue is against the order of CIT(A) deleting the disallowance made by the AO by invoking the provisions of section 40(a)(ia) of the Act for an amount of Rs.5,41,337/-. 3. At the time of hearing it is noticed that tax effect in this appeal of revenue is below prescribed monetary limits for filing of appeal before ITAT and other superior courts. It seems that the revenue's appeal, the amount in dispute involved is Rs.5,41,337/-, on which tax demand to be raised will be less than prescribed monetary limits (i.e. Rs.3 lakhs). The only issue now remains before us is that the appeal....
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....artmental appeals (In Income-tax matters) before Appellate Tribunal, High Courts and Supreme Court were specified. 2. In supersession of the above instruction, it has been decided by the Board that departmental appeals may be filed on merits before Appellate Tribunal, High Courts and Supreme Court keeping in view the monetary limits and conditions specified below. 3. Henceforth appeals shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:-- S. No. Appeals in Income-tax matters Monetary Limit (in Rs.) 1. Appeal before Appellate Tribunal 3,00,000 2. Appeal u/s. 260A before High Court 10,00,000 3. Appeal before Supreme Court 25,00,000 It is clarified t....
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....the tax effect is less than the monetary limit specified in para 3. In other words, henceforth, appeals can be filed only with reference to the tax effect in the relevant assessment year. However, in case of a 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, appeal shall be filed in respect of all such assessment years even if the 'tax effect' is less than the prescribed monetary limits in any of the year(s), if it is decided to file appeal in respect of the year(s) in which 'tax effect' exceeds the monetary limit prescribed. In case where a composite order/judgment involves more than one assessee, each assessee shall be dealt with sepa....
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....ct being less than the specified monetary limit and, therefore, no inference should be drawn that the decisions rendered therein were acceptable to the Department. Accordingly, they should impress upon the Tribunal or the Court that such cases do not have any precedent value. As the evidence of not filing appeal due to this instruction may have to be produced in courts, the judicial folders in the office of CIT must be maintained in a Systemic manner for easy retrieval. 8. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect. a. Where the Constitutional validity of the provisions....
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.... 4. On query from the Bench, the Ld. DR could not point out any of the exceptions as provided in the Circular as under: (a) that this is a loss case having tax effect more than the prescribed limit, which should be taken into account, (b) that this is a composite order for many assessment years where tax effect will be more than the prescribed limit as per para 5 of above instructions, (c) that there is other year pending as disputed on the singular issue, (d) that in the case of revenue, where constitutional validity of the provisions of the Act or I.T. Rules 1962 are under challenge, (e) that Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, (f) that Revenue Audit Objection....