2005 (7) TMI 66 - BOMBAY HIGH COURT

Monetary limit for the Department for filing reference to the High Court - Board has rightly taken a decision not to file references if the tax effect is less than Rs. 2 lakhs - The same policy for old matters needs to be adopted by the Department. In our view, the Board's circular dated March 27, 2000, is very much applicable even to the old references which are still undecided. The Department is not justified in proceeding with the old references wherein the tax impact is minimal. Thus, there is no justification to proceed with decades old references having negligible tax effect – Thus, we, do not think it necessary to answer the reference made to this court for the assessment year 1975-76 having negligible tax effect. Accordingly, reference stands returned unanswered