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2017 (10) TMI 1275 - SC - Income TaxMonetary limit for filing an appeal - Tax effect less than the prescribed limit Power of CBDT to give instruction with retrospective effect - circular dated 10th December, 2015 - Held that - This Court in the case of Suman Dhamija 2015 (9) TMI 239 - SUPREME COURT has held that, instructions/circular dated 9.2.11 is not retrospective in nature and they shall not govern cases which have been filed before 2011, and that, the same will govern only such cases which are filed after the issuance of the aforesaid instructions dated 9.2.2011.
Issues:
1. Retrospective operation of instructions/circular issued by the Central Board of Direct Taxes on 9.2.2011. Analysis: The Supreme Court addressed the issue of whether the instructions/circular issued by the Central Board of Direct Taxes on 9.2.2011 would have retrospective operation. In a previous case, the Court had ruled that the said instructions were not retrospective and would only apply to cases filed after 2011. The respondents in the present case relied on a circular from December 2015, but the Court held that the Central Board of Direct Taxes cannot issue a circular with retrospective operation. Therefore, the Court allowed the Appeals, set aside the High Court's order from 2.11.2011, and remitted the matter(s) back to the High Court for re-adjudication based on merit and in accordance with the law. The Civil Appeals were allowed accordingly.
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