2011 (11) TMI 449 - KARNATAKA HIGH COURT

Maintainability of appeal - Monetary limit of appeal to High court - tax effect of present appeal is Rs 4.8 lacs - instruction No.2/2005 prescribed a monetary limit of Rs. 4 lakhs v/s instruction No.3/2011, dated 09.02.2011 prescribing monetary limit of 10 lacs - Held that:- In the instant case, the instruction No. 3/11 is more beneficial than Instruction No. 2/05. If instruction No.3/11 is also made applicable to the pending appeals before this Court, it would grant relief to the assessee. Apart from granting relief to the assessee, if number of appeals pending before this Court are disposed of on the basis of the said circular, the precious time which would be saved by this Court could be better utilized for deciding disputes where tax effect is enormous. That apart, the duration, an appeal takes in this Court would be reduced as desired by the National Litigation Policy.

Benefit to which the assessee is entitled to should not be dependent on the date of the decision, over which neither the assessee nor revenue has no control. In this context, the circular would be discriminatory, if it is held to be prospective only. It could be saved from such vice of discrimination by holding it as retrospective. It is held that Instruction No. 3/11 is also applicable to the pending appeals. Appeal dismissed as the tax effect in the instant case is less than Rs. 10 lakhs without expressing any opinion on the merits of the claim.