Circular dated 15.5.2008 laying down monetary limit controls the filing of the appeals and not their hearing. Appeals filed as per applicable limit at the time of filing cannot be governed by circular applicable at the time of hearing. The object of the Circular u/s 268A is only to govern monetary limit for filing of the appeals. There is no scope for reading the circular as being applicable to pending appeals

The Proviso to s. 14A which gives protection to the assessee with respect to AY 2001-02 & earlier years was inserted w.e.f. 11.5.2001. As the order of the CIT u/s 263 was passed earlier on 29.12.99, the protection under the Proviso is not available

U/s 144C(1) the AO has to pass a draft assessment order in the case of an “eligible assessee” which is defined in s. 144C(15)(i) to mean any person in whose case the variation from returned income arises as a consequence of the order of the TPO u/s 92CA(3). As no transfer pricing adjustments had been made by te TPO, the assessee was not an “eligible assessee” and the AO had no jurisdiction to pass the draft assessment order

The assessees’ contention that export profit has to be computed with reference to the P&L A/c prepared under the Companies Act is not acceptable because there is no such provision in s.80HHC to determine export profit with reference to P&L A/c. Clause (iv) of s. 115JB (2) provides that the “amount of profit eligible for deduction u/s 80HHC as computed u/s 80HHC (3)” has to be deducted in computing the book profits. Accordingly, only the deduction u/s 80HHC as computed under the normal provisions is allowable