|DATE:||(Date of pronouncement)|
|DATE:||June 8, 2011 (Date of publication)|
|Click here to download the judgement (laxmi_jewel_cbdt_monetary_limit.pdf)|
CBDT Circular on monetary limits for filing appeals applies to pending appeals
The Tribunal had to consider whether Instruction No. 3/2011 dated 9.2.2011 which provides that the department should not file appeals before the Tribunal in cases where the tax effect does not exceed Rs. 3 lakhs would apply to pending appeals as well. HELD deciding in affirmative:
As per Instruction No. 3 of 2011 dated 09.02.2011 appeal before Tribunal can be filed where the tax effect exceeds the monetary limit of Rs. 3 lakhs. However, considering the similar situation where tax limits were modified by the CBDT Instruction No. 5 of 2008 the jurisdictional High Court in Madhukar K. Inamdar (HUF) 318 ITR 149 held that the circular will be applicable to the cases pending before the court either for admission or for final disposal. In view of the order of the jurisdictional High Court we hold that Instruction No. 3 dated 09.02.2011 is applicable for the appeal preferred by the Revenue. Therefore, the appeal is dismissed on the issue of tax effect involved.
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