TMI Blog2013 (5) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... r that this is a loss case having tax effect more than the prescribed limit, which should be taken into account, or is a composite order for many assessment years where tax effect will be more than the prescribed limit as per para 5 of above instructions,or there is other year pending as disputed on the singular issue, or that in the case of revenue, where constitutional validity of the provisions of the Act or I.T. Rules 1962 are under challenge or that Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or that Revenue Audit Objection in the case has been accepted by the Department and the same is under challenge - appeal of the revenue is dismissed. - I.T.A No. 753/Kol/2009 - - - Dated:- 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Hon'ble Delhi High Court in the case of CIT Vs Delhi Race Club in ITA No.128/2008 dated 03.03.2011 has held as under:- "The tax effect involved in the present appeal is Rs.4,65,860/-. As per the recent guidelines of the CBDT, appeal in those cases where the tax effect is less than 10 lacs, are not to be entertained. This court in the case of Commissioner of Income Tax-III v. M/s. P. S. Jain and Co. being ITA No. 179/1991 decided on 2nd August, 2010 has taken a view that such circular would also apply to pending cases." In view of the decision of Hon'ble Delhi High Court, the revised monetary limit of Rs. 3 lacs as per Instruction No.3/2011 will apply to pending appeals. The relevant circular issued by CBDT reads as under: "INST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 5. The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If, in the case of an assessee, the disputed issues arise in more than one assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quiesced in the decision on the disputed issues. The Income-tax Department shall not be precluded from filing an appeal against the disputed issues in the case of the same assessee for any other assessment year, or in the case of any other assessee for the same or any other assessment year, if the tax effect exceeds the specified monetary limits. 7. In the past, a number of instances have come to the notice of the Board, whereby an assessee has claimed relief from the Tribunal or the Court only on the ground that the Department has implicitly accepted the decision of the Tribunal or Court in the case of the assessee for any other assessment year or in the case of any other assessee for the same or any other assessment year, by not filing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in consultation with the Ministry of Law and Justice. 10. The monetary limits specified in para 3 above shall not apply to writ matters and direct tax matters other than Income-tax, filing of appeals in other direct tax matters shall continue to be governed by relevant provisions of statute and rules. Further, filing of appeal in cases of Income- tax, where the tax effect is not quantifiable or not involved, such as the case of registration of trusts or institutions under section 12A of the IT Act, 1961, shall not be governed by the limits specified in para 3 above and decision to file appeal in such cases may be taken on merits of a particular case. 11. This instruction will apply to appeals filed on or after February, 09, 2011. Howe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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