TMI Blog2011 (6) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... until the appeal is found to be opposed to the directives issued by the Board in its different circulars prevailing from time to time, such an appeal cannot be categorized as not maintainable - in the circular dated 15.5.2008 it is provided that in the case of loss, notional tax effect should be taken into account - Decided in favor of the revenue - Tax Appeal No. 621 of 2009 - - - Dated:- 30-6-2011 - Akil Kureshi, Sonia Gokani, JJ. Mauna M. Bhatt for the Appellant JUDGEMENT Akil Kureshi, J: Revenue has challenged the judgment of the Tribunal dated 19.09.2008. We had admitted the appeal and framed following substantial questions of law for consideration: "Whether the Appellate Tribunal is right in law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The second aspect of the matter is whether when the Board in its subsequent circular dated 15.5.2008 provided that " Similarly, in loss cases notional tax effect should be taken into account", did the Board desire for the first time that the appeals be permitted to be presented in cases of loss only on and from 15.4.2008 and not before. In other words, the question is whether above quoted portion in the Board circular dated 15.4.2008 is clarificatory in nature or not? 35. Close perusal of the circulars issued prior to 15.5.2008 noted hereinabove, would reveal that such circulars provided for different conditions on which the Revenue could prefer appeals before the Tribunal and Courts which included the monetary limits specified from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct exceeds the revised monetary limits i.e.Rs.2,00,000/- for the appeal to be file before the appellate Tribunal Rs.4,00,000/- for the appeal or reference before the High Court and Rs.10,00,000/- in case of appeals to the Supreme Court. Such limit came to be revised by Circular dated 24.10.2005 which provided for monetary limits of tax effect of Rs.2,00,000/-, Rs.4,00,000/- and Rs.10,00,000/- for appeals to the Tribunal, High Court and the Supreme Court respectively. None of these circulars provided that by virtue of assessment of loss by the Assessing Officer, different from that declared by the assessee, even if the possible tax effect is huge, no appeals should be presented before the Tribunal, High Court or the Supreme Court; merely bec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... returns the Board's instructions did not envisage further appeal also does not impress us. We may recall that 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 to our mind, 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, however, 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. In the previous circulars to reiterate, no such in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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