As per CBDT instruction tax effect must exceed 3 Lacs to file appeal before the Tribunal

Last updated: 17 March 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
We find that appeal in this case was filed on 4.2.2011 i.e. before the aforesaid instruction dated 9.2.2011. However, tax effect is below even ``2 lacs, stipulated in CBDT instruct ion no. 5 of 2008 dated 15.5.2008. Moreover, a co-ordinate Bench vide their decision dated 4.3.2011 in the case of ITO vs. Bhavya Softech (P) Ltd. in ITA no.4514/Del./2010 ,following the decision dated 18.2.2011 of Hon’ble Delhi High Court in CIT Vs. Rajan Ramanee in ITA no. 230/D/2011, concluded as under; “2. At the very outset, it was submitted by the ld.AR of the assessee that in the present case the tax effect of the dispute is below Rs.3 lakhs and hence this appeal of the revenue is not maintainable in view of the Board’s new instructions No.3 dated 9.2.2011.

Citation :
DCIT Circle-9(1),Room no. 163, CR Building, IP Estate New Delhi-110002(Appellant) V/s. M/s SMS Holdings Pvt. Ltd.,A-77,Swasthya Vihar,Delhi-110092 (Respondent)