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2013 (10) TMI 69 - HC - Income TaxTax effect - Maintainability of appeal in view of the CBDT Circular/ Instruction No.5 of 2008 - Ground that the tax effect in the present appeal is less than Rs.2,00,000/- Held that:- "Tax effect" means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issues against which appeal is intended to be filed (hereinafter referred to as "disputed Issues"). - However the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty orders, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against - In the present case on examination of the order of the Assessing Officer, notional tax effect on loss return of Rs.1,56,47,435/- would come to Rs.32,03,487/- and thus the exceptions in Para 4 of the CBDT Instruction No.5 of 2008 will not bar the appeal. The revenue in such case will be entitled to prefer second appeal to the Tribunal – Decided in favor of Revenue.
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