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2020 (9) TMI 246 - HC - Income TaxMaintainability of appeal - low tax effect - monetary limits prescribed under Act - Revision u/s 263 - HELD THAT:- Referring to Circulars issued by the Central Board of Direct Taxes from time-to-time, the underlying policy of the Department is to reduce the litigation. So far as the matters arising out of the order under Section 263 is concerned, the same pertain to invocation of the revisional powers of the Commissioner of Income-tax for revising the assessment orders, which are erroneous or prejudicial to the interest of the Revenue. Therefore, when any order is passed under Section263 of the Act, the same would also be the order under the Income Tax Act, 1961. The Circular referred to above do not distinguish the order passed under Section263 or any other Section of the Act,1961, but it refers the monetary limits prescribed in the circulars itself and if any appeal is filed, which is not a writ-matter, then the monetary limits prescribed under the circular would apply and the Department is bound by such monetary limits and accordingly, the Department cannot pursue the matter, if the monetary limit prescribed in the circular is adhered-to. If, we take consolidated tax effect in all these appeals, it would not exceed the monetary limits prescribed in the Circular No.17 of 2019, dated 8th August, 2019. Therefore, these appeals are dismissed due to low tax effect.
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