TMI Blog2018 (7) TMI 2247X X X X Extracts X X X X X X X X Extracts X X X X ..... answering the purported substantial questions of law. - I.T.A. No. 233/2011 - - - Dated:- 16-7-2018 - THE HON'BLE DR. JUSTICE VINEET KOTHARI AND THE HON BLE MRS. JUSTICE S. SUJATHA For the Appellant : Mr. E.I. SANMATHI, ADV. For the Respondent : Mr. S. PARTHASARATHI, ADV. ORDER 1. Both the learned counsels have brought to the notice of this Court that the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, New Delhi, has recently issued a revised Circular No.3/2018, dated 11th July, 2018, revising the monetary limits for filing appeals by the Department before the Income Tax Appellate Tribunal, High Courts and Supreme Court and the earlier monetary limits for the High C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court 50,00,000 3. Before Supreme Court 1,00,00,000 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 (hereinafter referred to as disputed issues ). Further, tax effect shall be tax including applicable surcharge and cess. Howev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Further, where income is computed under the provisions of section 115JB or section 115JC, for the purposes of determination of tax effect , tax on the total income assessed shall be computed as per the following formula- (A - B)+(C - D) where, A = the total income assessed as per the provisions other than the provisions contained in section 115JB or section 115JC (herein called general provisions); B = the total income that would have been chargeable had the total income assessed as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax effect exceeds the specified monetary limits. 8. In the past, a number of instances have come to the notice of the Board, whereby an assessee has claimed relief from the Tribunal or the Court only on the ground that the Department has implicitly accepted the decision of the Tribunal or Court in the case of the assessee for any other assessment year or in the case of any other assessee for the same or any other assessment year, by not filing an appeal on the same disputed issues. The Departmental representatives/counsels must make every effort to bring to the notice of the Tribunal or the Court that the appeal in such cases was not filed or not admitted only for the reason of the tax effect being less than the specified monetary lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imits specified in para 3 above shall not apply to writ matters and Direct tax matters other than Income tax. Filing of appeals in other Direct tax matters shall continue to be governed by relevant provisions of statute and rules. Further, in cases where the tax effect is not quantifiable or not involved, such as the case of registration of trusts or institutions under section 12A/ 12AA of the IT Act, 1961 etc., filing of appeal shall not be governed by the limits specified in para 3 above and decision to file appeals in such cases may be taken on merits of a particular case. 12. It is clarified that the monetary limit of ₹ 20 lakhs for filing appeals before the ITAT would apply equally to cross objections under section 253(4) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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