9911796707
TMI Blog2025 (5) TMI 1420X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 17.09.2024 read with CBDT Circular No. 05/2024 dated 15.03.2024." 2. The Assessee has also placed on record the computation of tax effect in the present case, which indicates that it is below the threshold limit of Rs. 2 crores as stipulated in Circular No. 5 of 2024 dated 15.03.2024 as modified by the Circular No. 9 of 2024 dated 17.09.2024 issued by Central Board of Direct Taxes [CBDT]. In terms of the said circular, the threshold tax limit for appealing before this court was stipulated as Rs. 2 crores. The Assessee has set out a tabular statement computing the tax effect in the present case as Rs. 1,71,19,532/-. Paragraph 5 of the present application that includes the said tabular statement is set out below: "5. That in the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CBDT's Circular: "5.1 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. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [Rs. 2,80,50,853/- + Rs. 1,00,11,906/-]. Concededly, the tax effect on the said amount is less than the stipulated limit of Rs. 2 crores. 7. The contention that the losses assessed in the previous assessment years must also be taken into account as the carry forward of the same has been disallowed is unmerited. We do not find the machinery to compute the tax effect as stated in paragraph 5.1 of the aforementioned Circular contemplates taking into account the observations made by the AO in regard to the losses assessed in the previous years, which have been carried forward. Thus, although the AO in the present case has noted that the business losses of prior years amounting to Rs. 30,73,03,525/- are also required to be disallowed; the same ..... X X X X Extracts X X X X X X X X Extracts X X X X
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