TMI Blog2009 (7) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... urt was delivered by 1. VIJAY C. DAGA J. —Heard. Perused appeals and affidavit dated June 30, 2009, filed by Shri K. K. Sharma, Commissioner of Income-tax-3, Thane, wherein he has stated that in the opinion of the Revenue, the appeals and/or petitions filed before May 15, 2008, involving substantial question of law of recurring nature can be filed notwithstanding the fact that total cumulative tax effect involved in the appeal is less than Rs. 4 lakhs. According to him, such an appeal shall not be governed by the Central Board of Direct Taxes ("the CBDT" for short) Circular/Income-tax Instruction No. 5 of 2008, dated May 15, 2008. Since all these appeals were filed prior to the date of issuance of the said circular, they need to be heard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the relevant assessment year. However, in case of a composite order of any High Court or appellate authority, which involves more than one year, appeal shall be filed in respect of all assessment years even if the 'tax effect' is less than the prescribed 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." (emphasis supplied) 4. The aforesaid paragraph (5) makes it clear that no appeals should be filed in the cases involving tax effect less than Rs. 4 lakhs notwithstanding the issue being of recurring nature. 5. The aforesaid paragraph (5) was a subject-matter of the judicial interpretation in the case of CIT v. Polycott Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue, on the face of the above clear instructions of the Central Board of Direct Taxes, can contend that the Circular dated May 15, 2008, issued by the Central Board of Direct Taxes is applicable to the cases filed after May 15, 2008, and in compliance thereof, they do not file appeals, if the tax effect is less than Rs. 4 lakhs ; but the said circular is not applicable to the cases filed prior to May 15, 2008, i.e., to the old pending appeals ; even if the tax effect is less than Rs. 4 lakhs. In our view, there is no logic behind this belief entertained by the Revenue. 8. This court can very well take judicial notice of the fact that by passage of time money value has gone down, the cost of litigation expenses has gone up, filing of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The aforesaid Circular makes it clear that on the date of issuance of Circular, prevailing instructions fixing monetary limit will hold good even for pending cases. Adopting the same approach, we are of the considered view that the Central Board of Direct Taxes Circular dated May 15, 2008, would be very much applicable to the pending cases requiring department to withdraw cases wherein the tax effect is less than the prescribed monetary limits. 12. At this juncture, it will also be relevant to mention that it was necessary for the Central Board of Direct Taxes to put a caveat, while issuing instructions vide its Circular dated June 5, 2007, that the appeals involving substantial question of law of recurring nature should not be withdr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers or instructions or directions issued under sub-section (1), it shall not be lawful for an assessee, being a party in any appeal or reference, to contend that the income-tax authority has acquiesced in the decision on the disputed issue by not filing an appeal or application for reference in any case. (4) The Appellate Tribunal or court, hearing such appeal or reference, shall have regard to the orders, instructions or directions issued under sub-section (1) and the circumstances under which such appeal or application for reference was filed or not filed in respect of any case. (5) Every order, instruction or direction which has been issued by the Board fixing monetary limits for filing an appeal or application for reference shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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