2009 (7) TMI 115

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.... 1. The assessee filed a return of income declaring a loss of Rs. 1,13,20,160 for the assessment year 2001-02. In the return the assessee had also claimed rent charges of Rs. 55,20,545.68 and extra bed charges, laundry, etc., at Rs. 12,24,480. The Assessing Officer disallowed the interest on advances. He also disallowed the amount of Rs. 11,82,399.80 on sundry creditors on the assessee's failure ....

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....o tax effect on account of the Central Board of Direct Taxes circulars and instructions which, according to the assessee, were binding by the Department. As per the Central Board of Direct Taxes Instruction No. 1979, dated March 27, 2000, and Instruction No. 2 of 2005, dated October 24, 2005, the appeals before the Income-tax Appellate Tribunal are not maintainable if the tax effect is below Rs. 2....

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....is Instruction No. 5 of 2008 and as per these instructions, in loss cases, notional tax effect is to be taken into account. The learned counsel however, conceded that these instructions are applicable in respect of those appeals preferred after the issuance of these instructions. In fact, it is specifically provided in paragraph 11 of the said instruction as under "this instruction will apply to a....