TMI Blog2013 (10) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - Income Tax Appeal No. - 178 of 2011 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee was a loss return?" The Income Tax Appellate Tribunal has not gone into the merits of the matter and dismissed the appeal on the ground that in view of the tax demanded for the assessment year 1999-2000, which is Rs.2,26,774/- and which includes income tax demand of Rs.1,16,134/- excluding interest, the tax effect is less than Rs.2 lacs to entertain appeal. The Tribunal further found that as per Instruction No.5 of 2008 dated 15th May, 2008 since the tax effect is less than Rs.2 lacs, the revenue is not entitled to file appeal. It further held that 'during the course of hearing revenue could not point out that appeal filed was covered by exceptions provided in the instructions'. Shri Shambhu Chopra submits that in case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est 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, we find that 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. We are not impressed with the submissions of Shri Suyash Agrawal that in case we go into the merits of the matt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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