TaxTMI 
TaxTMI 
2014 (1) TMI 809
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....on Bench has framed the following the substantial question of law. "Whether the Appellate Tribunal is right in law and on facts in deciding the appeal of the revenue without going into merits on the ground that th tax effect involved in the assessee case is nil, though as per the Board's instruction No.5/08, in loss cases the notional tax effect is to be considered?" 3.0. Feeling aggrieved and dissatisfied with the order passed by the CIT(A) dated 22.3.2001 passed in Appeal CIT(A)III/ Wd.7(1)/115/199495 for AY 199293, the revenue preferred appeal before the learned ITAT and by impugned judgment and order the learned ITAT has dismissed the said appeal relying upon the decision of the ITAT, Kolkata Bench ( Special Bench ) in the case of Jt.....
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....ar dated 15.5.2008 provided that " Similarly, in loss cases notional tax effect should be taken into account", did the Board desire for the first time that the appeals be permitted to be presented in cases of loss only on and from 15.4.2008 and not before. In other words, the question is whether above quoted portion in the Board circular dated 15.4.2008 is clarificatory in nature or not? 35.Close perusal of the circulars issued prior to 15.5.2008 noted hereinabove, would reveal that such circulars provided for different conditions on which the Revenue could prefer appeals before the Tribunal and Courts which included the monetary limits specified from time to time. Nowhere do these circulars, specify that irrespective of the degree of dive....
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....late Tribunal Rs.4,00,000/for the appeal or reference before the High Court and Rs.10,00,000/in case of appeals to the Supreme Court. Such limit came to be revised by Circular dated 24.10.2005 which provided for monetary limits of tax effect of Rs.2,00,000/, Rs.4,00,000/and Rs.10,00,000/for appeals to the Tribunal, High Court and the Supreme Court respectively. None of these circulars provided that by virtue of assessment of loss by the Assessing Officer, different from that declared by the assessee, even if the possible tax effect is huge, no appeals should be presented before the Tribunal, High Court or the Supreme Court; merely because ultimately the income of the assessee was negative. We have no hesitation in coming to the conclusion t....
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....cular dated 15.5.2008 it is provided that in the case of loss, notional tax effect should be taken into account. This clarification to our mind, contained in circular dated 15.5.2008 and absence of any such clarification in the previous circulars, is of no consequence. Such a clause can, at the best, be seen as clarificatory declaration by the Board to put the controversy beyond any shadow of doubt or debate. It cannot, however, be stated that only on and from 15.5.2008 the Board desired that on the basis of notional tax effect in cases of loss the appeals should be filed. In the previous circulars to reiterate, no such intention emerges. Only because clarification came in the subsequent circular dated 15.5.2008, would not mean that previou....