2016 (1) TMI 950 - SCH - Income Tax

Monetary limit - Held that - As per Instruction No. 2/2005 dated 24.10.2005 of the CBDT no appeals were to be filed where the tax effect was less than Rs. 10 lakhs . Dismiss the appeal on the ground of low tax effect only.

Summary

The Supreme Court of India dismissed the appeal for Assessment Year 1991-1992 due to a tax effect of Rs. 8,84,860, below the threshold set by CBDT. The Department's appeal was based on the issue's recurring effect, but the Respondent had accepted a similar Tribunal order for the same treatment without filing appeals in the High Court. The appeal was dismissed based on the low tax effect, keeping the question of law open.