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TMI Blog2014 (2) TMI 1081X X X X Extracts X X X X X X X X Extracts X X X X ..... iled by the department is below Rs. 3 lakhs i.e. Rs.1,71,663/- in assessment year 2005-06 and of Rs.1,76,354/- in assessment year 2008-09. It is stated that in view of CBDT Instruction No.3 of 2011 dated 9.2.2011, the appeals filed by the department are not maintainable and reliance is placed on the decision of Hon'ble Mumbai High Court in the case of CIT Vs. Reliance Utilities and Power Ltd (2009) 313 ITR 340(Bom). However, ld. DR submitted that the appeals have cascading effect and in view of decision of Hon'ble Apex Court in the case of CIT V/s Surya Herbal Ltd.[2011] 14 taxmann.com 142 (SC), the CBDT instruction No.3 of 2011 dated 9.2.2011 does not apply ipso facto. He submitted that the appeals be adjudicated on merits. 3. We have con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es not exceed the monetary limits given hereunder:- S. No. Appeals in Income-tax matters Monetary Limit (In Rs.) 1. Appeal before Appellate Tribunal 3,00,000 2. Appeal u/s 260A before High Court 10,00,000 3. Appeal before Supreme Court 25,00,000 It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case 4. For this purpose, "tax effect" means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issues against which appeal is intended to be filed (h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escribed monetary limits in any of the year(s), if it is decided to file appeal in respect of the year(s) in which 'tax effect' exceeds the monetary limit prescribed. In case where a composite order/judgment involves more than one assessee, each assessee shall be dealt with separately. 6. In a case where appeal before a Tribunal or a Court is not filed only on account of the tax effect being less than the monetary limit specified above, the Commissioner of Income-tax shall specifically record that "even though the decision is not acceptable, appeal is not being filed only on the consideration that the tax effect is less than the monetary limit specified in this instruction". Further, in such cases, there will be no presumption that the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect. (a) Where the Constitutional validity of the provisions of an Act or Rule are under challenge, or (b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection in the case has been accepted by the Department. 9. The proposal for filing Special Leave Petition under Article 136 of the Constitution before the Supreme Court should, in all cases, be sent to the Directorate of Income-tax (Legal & Research), New Delhi and the decision to file Special ..... X X X X Extracts X X X X X X X X Extracts X X X X
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