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2015 (2) TMI 66 - AT - Income TaxPenalty u/s.271(1)(c) - Revenue’s appeal in-asmuch as it disputes the cancellation of the penalty in the sum of ₹ 3,36,107/-, may not be maintainable in view of section 268A prescribing monetary limit for the filing of appeals by the Revenue - Held that:- As a plain reading would show, it is the Instruction No.3/2011 dated 09.02.2011 which should apply in the instant case; the monetary limit for appeals before the appellate tribunal per which is at ₹ 3 lacs. Again, without doubt, the right to appeal is a statutory right, and it is trite law that vested right cannot be divested. Even granting so, the same could only be on the basis, and in terms, of or by an express provision of law. Section 268A of the Act clearly requires the appellate forums, being the appellate tribunal, high court and supreme court, to, while deciding the appeals by the Revenue preferred before them, have regard to, inter alia, the directions, instructions, etc. by the Board prescribing the monetary limits for filing its appeals before the said forums. The said directions, instructions, etc. thus assume part of and have the force of law. Further, the monetary limit prescribed is for regulating the filing of appeals or references by an income tax authority under the Act. - Whatever be the merits of the Revenue’s case, the appellate tribunal as a lower court is bound by the decisions by the hon’ble jurisdictional high court, which has taken a consistent view in favour of the Instructions by the Board in the matter, both prior and subsequent to section 268A, brought on the statute by Finance Act, 2008, being retrospective, so that they shall apply to appeals by the Revenue filed prior to the date of their issue and coming in to effect. Put differently, shall apply to pending appeals. In other words, the monetary limit prescribed per a circular/instruction issued u/s. 268A that shall apply qua an appeal is that in force at the time the appeal is heard and not when it is filed. The only recourse therefore for the Revenue would be to pursue the matter before the hon’ble court under review jurisdiction or before the hon’ble apex court, and not before the tribunal. - Decided against revenue.
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