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2012 (9) TMI 20 - HC - Income TaxRejection of tax appeal against penalty levied u/s 271(1)(c) - total cumulative tax effect involved in the appeals was less than Rs. 4 Lacs - Held that:- CBDT Instruction No. 5 of 2008 dated 15th May, 2008 states that monetary limit was increased and appeals were to be filed under Section 260A, thereafter, only in cases where the tax effect exceeded Rs. 4 Lacs applicable to appeals filed on or after 15th May, 2008. It was further provided that in cases, where appeals were filed before 15th May, 2008, they would be governed by the instructions on this subject which were operative at the time when such appeals were filed - For this purpose, "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. One fails to understand how the Revenue, on the face of the above clear instructions of the CBDT, can contend that the circular dt. 15th May, 2008 issued by the CBDT is applicable to the cases filed after 15th May, 2008 and in compliance thereof, they do not file appeals, if the tax effect is less than Rs. 4 Lakhs, but the said circular is not applicable to the cases filed prior to 15th May, 2008 i.e. to the old pending appeals, even if the tax effect is less than Rs. 4 Lakhs. Thus there is no logic behind this belief entertained by the Revenue - Since in this Appeal the tax effect on the quantum of penalty deleted by the ITAT is Rs.5,21,530/-, which is less than Rs.10 lakhs fixed under Instruction No.3 of 2011 as operative at the time when such appeals were filed, therefore, this Tax Appeal filed under section 260A is dismissed as not maintainable on the ground of monetary limit, without expressing any opinion on merits of the case.
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