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2013 (9) TMI 811 - ALLAHABAD HIGH COURTMonetary limit for filing an appeal by the revenue - Appeal of Department barred by Board's circular under Section 268A of the Act - Notional tax effect - Assessee-respondent has filed its return declaring loss of Rs.18,47,71,360/- Tribunal held that tax effect being less than Rs.2,00,000/- lacs, the appeal of the Revenue was not maintainable – Held that:- By virtue of subsequent clarifications contained in circulars dated 15.5.2008 and 9.2.2011, the position prevailing prior to such circulars gets amplified and that therefore in cases of loss returns the Board's instructions did not envisage further appeal also does not impress - In the circular 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 previously the Board desired that such appeals should be filtered out. Merely because even as per the Assessing Officer's order, ultimately income of the assessee is negative, the Revenue's appeal before the appellate Tribunal would not be barred by the Board's circular under Section 268A of the Act. It is, however, clarified that the notional tax effect would have to be above the limits prescribed by the Board from time to time for presentation of such appeals. In all these cases since it is stated that the notional tax effect would be higher than the limits prescribed by the Board in different circulars - Tribunal committed an error in dismissing the Revenue's appeals as being not maintainable - The matter is remanded back to the Tribunal to decide the same strictly on merits.
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