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2014 (1) TMI 809 - HC - Income TaxWhether in cases of negative income the appelant revenue is debarred from filing appeal - Held that:- The circulars issued prior to 15.5.2008 provided for different conditions on which the Revenue could prefer appeals before the Tribunal and Courts which included the monetary limits specified from time to time - None of these circulars provided that by virtue of assessment of loss by the Assessing Officer, different from that declared by the assessee, even if the possible tax effect is huge, no appeals should be presented before the Tribunal, High Court or the Supreme Court; merely because ultimately the income of the assessee was negative. By virtue of subsequent clarifications contained in circulars dated 15.5.2008 and 9.2.2011 the position prevailing prior to such circulars gets amplified - In cases of loss returns, notional tax effect should be taken into account - This clarification, contained in circular dated 15.5.2008 and absence of any such clarification in the previous circulars, is of no consequence - Such a clause can be seen as clarificatory declaration by the Board - Only because clarification came in the subsequent circular dated 15.5.2008, would not mean that previously the Board desired that such appeals should be filtered out - Decided in favour of Revenue.
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