|DATE:||(Date of pronouncement)|
|DATE:||March 8, 2011 (Date of publication)|
|Click here to download the judgement (varindera_cbdt_circular_appeal_limits.pdf)|
CBDT Circular on monetary limits for filing appeals does not apply to pending appeals
The CBDT issued Circular dated 15.5.2008 prescribing monetary limit for filing of appeals by the department before appellate authorities. On the question whether the Circular applied to appeals filed prior to the date of the said circular, the P&H High Court in Abhinash Gupta 41 DTR (P&H) 129 followed the view in Madhukar K. Inamdar 318 ITR 149 (Bom) and held that the Circular though not retrospective would apply to pending appeals. Due to a doubt raised as to the correctness of this view, the matter was referred to a Full Bench. Held by the Full Bench reversing Abhinash Gupta and dissenting from the view of the Bombay High Court:
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.