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2018 (6) TMI 1621 - KERALA HIGH COURTApplicability of the monitory limit in filing appeals - subject matter of the questions of law raised have a cascading effect in the general application of the Income Tax Act and the question also is one which arises periodically in the case of other assessee too - Claim the benefit u/s 35AB - whether 1/6th amount paid by the assessee for know-how for the purpose of setting up of modern plant is allowable under Section 35AB when the assessee had not commenced business in the relevant assessment year? - HELD THAT:- FAA had found that the expenses, being incurred for the purpose of know-how, definitely, the same is allowable. The Tribunal refused to entertain the appeal relying on the circular of the CBDT restraining the Department from filing appeals where the tax effect is less than ₹ 2 lakhs. It was found that the circular applies equally to old cases and new cases. The learned Counsel appearing for the assessee also submits that the tax effect, in the subject year and the succeeding years was NIL for reason of the assessee having continuosly suffered loss in all the years. There can be no cascading effect atleast in the case of the assessee. In such circumstances, we are of the opinion that the question of law arising from the First Appellate Authority's order can be left open for consideration in an appropriate case. The Income Tax Appeals would stand rejected answering the questions raised against the Revenue and in favour of the assessee finding that the appeal before the Tribunal was not maintainable.
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