2018 (10) TMI 1977 - SCH - Income Tax

Maintainability of appeal before Supreme court - Low tax effect - HELD THAT - In these appeals, the tax effect is less than Rs. 1 Crore and are covered by Circular No. 3/2018 dated 11.07.2018 of the Central Board of Direct Taxes. These appeals are, accordingly, dismissed. However, it shall be open to the Income-Tax Department to seek review in any of these matters, if it is pointed out that the tax effect is more than Rs. 1 Crore.

Summary

Issues: Tax effect less than Rs. 1 Crore, Applicability of Circular No. 3/2018, Dismissal of appeals, Review by Income-Tax Department

In the judgment delivered by the Supreme Court of India, the court considered multiple civil appeals where the tax effect involved was less than Rs. 1 Crore. The court noted that these appeals fell within the purview of Circular No. 3/2018 dated 11.07.2018 issued by the Central Board of Direct Taxes. Consequently, the court dismissed all the appeals due to the tax effect being below the specified threshold. However, the court allowed the Income-Tax Department the opportunity to request a review in any of these cases if it could be demonstrated that the tax effect exceeded Rs. 1 Crore. The judgment also addressed the disposal of any pending applications related to these matters. This decision underscores the importance of adhering to the prescribed tax effect limits and the provisions outlined in the circular issued by the Central Board of Direct Taxes.