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2013 (2) TMI 451 - HC - Income TaxInstruction of CBDT – Monetary limits for the Revenue to file appeals before the High Court - Revenue has filed appeals – contention of the assessee is that since the tax effect is less than the monetary limit of ₹ 10 lakhs prescribed in Instruction No. 3 of 2011 issued by the CBDT, appeals are not maintainable – Held that:- section 268A has been introduced on the statute book with retrospective effect. Section 268A carves out an exception for filing of appeals and references under section 260A of the Act – Further the Legislature has prescribed that the CBDT is empowered to issue circulars and instructions from time to time, with regard to filing of appeals depending on the tax effect involved – Instruction No. 3 of 2011 provides that appeals shall not be filed in cases where the tax effect does not exceed ₹ 10 lakhs. Delhi High Court in the case of CIT v. Delhi Race Club Ltd. [2011 (3) TMI 1488 - High Court of Delhi] has held that, CBDT circular raising the monetary limit of the tax effect to ₹ 10 lakhs would be applicable to the pending cases also – Therefore circulars or instructions issued under section 268A of the Income-tax Act by the CBDT are applicable not only to new cases but to pending cases as well. Such circulars have been issued under section 268A of the Income-tax Act, which is an exception to the provisions of section 260 of the Act. The CBDT being mindful of this position has issued the aforesaid instructions - The main objective of such instructions is to reduce the pending litigations where the tax effect is considerably small – Therefore tax appeals are required to be dismissed.
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