{"id":5387,"date":"2012-08-17T06:25:47","date_gmt":"2012-08-17T06:25:47","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=5387"},"modified":"2012-08-17T06:25:47","modified_gmt":"2012-08-17T06:25:47","slug":"cit-vs-virendra-co-bombay-high-court-low-tax-effect-circular-is-retrospective-applies-to-pending-appeals","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/cit-vs-virendra-co-bombay-high-court-low-tax-effect-circular-is-retrospective-applies-to-pending-appeals\/","title":{"rendered":"CIT vs. Virendra &#038; Co (Bombay High Court)"},"content":{"rendered":"<table width=\"150\" border=\"0\" align=\"right\">\n<tr>\n<td><a href=\"https:\/\/itatonline.org\/archives\/?dl_id=802\" onclick=\"if (event.button==0) \r\n     setTimeout(function () { window.location = 'http:\/\/itatonline.org\/downloads.php?varname=dl_id=802&varname2=virendra_low_tax_effect_circular.pdf'; }, 100)\" ><strong>Click here to download the judgement (virendra_low_tax_effect_circular.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n<p><strong><br \/>\nLow Tax Effect Circular is retrospective &#038; applies to pending appeals<br \/>\n<\/strong><\/p>\n<p>The department filed an appeal in June 2000, the tax effect of which was less than Rs. 10 lakhs. The assessee claimed, relying on <a href=\"http:\/\/www.itatonline.org\/info\/index.php\/revised-limits-for-filing-appeals-by-department-before-appellate-authorities\/\">Instruction No. 3\/2011 dated 9.2.2011<\/a>, that as the tax effect was less than Rs. 10 lakhs, the appeal was not maintainable. The department opposed the plea on the ground that the said Instruction was <em>prospective<\/em> and did not apply to appeals filed before 9.2.2011. HELD by the High Court dismissing the appeal:<\/p>\n<blockquote><p>S. 268A was inserted by the Finance Act 2008 w.r.e.f. 1.4.1999 to reduce litigation in small cases and regulate the right of Revenue to file or not to file appeal. <a href=\"http:\/\/www.itatonline.org\/info\/index.php\/revised-limits-for-filing-appeals-by-department-before-appellate-authorities\/\">Instruction no.3\/2011 dated 9.2.2011<\/a> has been issued by the CBDT pursuant to this power. Though <strong>clause 11<\/strong> provides that the instruction would apply to <strong>appeals filed on or after 9.2.2011<\/strong> and appeals filed that date would be governed by the instructions operative at the time the appeal was filed, in a number of cases, it has been interpreted to mean that the <strong>monetary limits<\/strong> specified in the Instruction would apply to <strong>pending appeals<\/strong> as well (<strong>Vijaya V. Kavekar<\/strong> (Bom) followed (<em>included in file<\/em>).<\/p><\/blockquote>\n<div class=\"journal2\">\nSee also <strong><a href=\"http:\/\/itatonline.org\/archives\/index.php\/cit-vs-surya-herbal-ltd-supreme-court-cbdt-low-tax-effect-circular-not-applicable-to-matters-having-cascading-effect\/\">Surya Herbal<\/a><\/strong> (SC), <strong><a href=\"http:\/\/itatonline.org\/archives\/index.php\/cit-vs-virgo-marketing-pvt-ltd-supreme-court-high-court-to-consider-whether-low-tax-effect-circular-has-retrospective-effect\/\">Virgo Marketing<\/a><\/strong> (SC), <strong><a href=\"http:\/\/itatonline.org\/archives\/index.php\/cit-vs-varsha-dilip-kohle-bombay-high-court-low-tax-effect-circular-is-retrospective-dept-must-show-cascading-effect\/\">Varsha Dilip Kohle<\/a><\/strong> (Bom), <strong><a href=\"http:\/\/itatonline.org\/archives\/index.php\/cit-vs-ms-ranka-ranka-karnataka-high-court-cbdts-decision-to-confine-the-effect-of-low-tax-effect-instruction-to-fresh-appeals-is-contrary-to-the-object-of-s-268a-the\/\">Ranka &#038; Ranka<\/a><\/strong> (Kar) &#038;  <strong><a href=\"http:\/\/www.itatonline.org\/info\/index.php\/circular-on-monetary-limits-for-filing-appeals-applicable-prospectively-cbdt\/\">CBDT\u2019s letter dated 2.9.2011<\/a><\/strong><\/p>\n<\/div>\n<p><!--\n\n\n\n\n\n\/\/--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 268A was inserted by the Finance Act 2008 w.r.e.f. 1.4.1999 to reduce litigation in small cases and regulate the right of Revenue to file or not to file appeal. <a href=\"http:\/\/www.itatonline.org\/info\/index.php\/revised-limits-for-filing-appeals-by-department-before-appellate-authorities\/\">Instruction no.3\/2011 dated 9.2.2011<\/a> has been issued by the CBDT pursuant to this power. Though <strong>clause 11<\/strong> provides that the instruction would apply to <strong>appeals filed on or after 9.2.2011<\/strong> and appeals filed that date would be governed by the instructions operative at the time the appeal was filed, in a number of cases, it has been interpreted to mean that the <strong>monetary limits<\/strong> specified in the Instruction would apply to <strong>pending appeals<\/strong> as well (<strong>Vijaya V. Kavekar<\/strong> (Bom) followed (<em>included in file<\/em>)<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/cit-vs-virendra-co-bombay-high-court-low-tax-effect-circular-is-retrospective-applies-to-pending-appeals\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,5],"tags":[],"class_list":["post-5387","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-high-court"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/5387","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/comments?post=5387"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/5387\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=5387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=5387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=5387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}