9911796707
TMI Blog2012 (3) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest. At the time of hearing of these appeals, the learned authorised representative for the assessee at the very outset pointed out that tax effect involved in these appeals was less than Rs. 2 lakhs and therefore appeals filed by the Revenue were not maintainable and have to be dismissed. It was pointed out that the assessee for the assessment year 1997-98 had declared a loss of Rs. 5.53 crores, details of which are available at page 35 of the paper book. The Assessing Officer in the original assessment had computed the loss at Rs. 42.51 lakhs and after set-off of income from other sources, total income was determined at nil. In appeal, the Commissioner of Income-tax (Appeals) allowed certain relief and after considering the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. The Central Board of Direct Taxes vide Instruction No. 5 of 2008, dated May 15, 2008, for the first time clarified that the tax effect would mean notional tax effect in case of losses. Paragraph 11 of the said instruction also clearly stated that the Instruction would apply only to appeals filed on or after May 15, 2008 and appeals filed before that date would be governed by the Instruction which was operative at the time of filing of the appeal. The learned authorised representative further argued that applicability of the Instruction dated May 15, 2008 with reference to notional tax effect had been considered by the hon'ble High Court of Delhi in the case of CIT v. Continental Construction Ltd. [2011] 336 ITR 394 (Delhi) in which it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as also not binding. It was also submitted that the notional tax effect as clarified by the Central Board of Direct Taxes in Instruction No. 5 to 2008 will have retrospective application and will apply to all pending appeals. We have perused the records and considered the rival contentions carefully. The dispute is regarding maintainability of appeals only on ground of low tax effect. The Central Board of Direct Taxes had been issuing circulars from time to time directing the Revenue authorities not to file appeal before the Tribunal or High Courts in case tax effect was less than a particular amount. Instruction No. 1979 dated March 27, 2000, provided that no appeal would be filed before the Tribunal if the tax effect was less than Rs. on ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
