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2014 (1) TMI 814 - HC - Income TaxTax effect of appeal - Held that:- None of the circulars presented before us intended to bar the tax appeals even where potential tax effect would be enormous, simply because in the year in question, the assessee had earned negative income - In the circular dated 15.5.2008 it is provided that in the case of loss, 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, at the best, be seen as clarificatory declaration by the Board to put the controversy beyond any shadow of doubt or debate - It cannot be stated that only on and from 15.5.2008 the Board desired that on the basis of notional tax effect in cases of loss the appeals should be filed 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 - The notional tax effect would have to be above the limits prescribed by the Board from time to time for presentation of such appeals - In all these cases since it is stated that the notional tax effect would be higher than the limits prescribed by the Board in different circulars - The Tribunal committed an error in dismissing the Revenue’s appeals as being not maintainable - Decided in favour of Revenue.
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