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2019 (9) TMI 194 - HC - Income TaxLow tax effect - Monetary limit - HELD THAT - Appeal is not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by the Central Board of Direct Taxes. By the said Circular, the monetary limit for filing or pursuing an appeal before the High Court has been increased to ₹ 1 Crore. It is further submitted that the tax effect in this case is less than the threshold limit, as it is ₹ 81.46 lakhs. The above tax case appeal is dismissed on account of the low tax effect. The substantial questions of law raised are left open. In the event the tax effect is above the threshold limit fixed in the said circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeal to be heard and decided on merits.
Issues Involved:
Appeal under Section 260A of the Income Tax Act, 1961 against an order of the Income Tax Appellate Tribunal for the assessment year 2008-09. Analysis: 1. Invocation of Section 153C Jurisdiction: The main issue raised in the appeal was whether the Tribunal correctly held that invoking the provisions of Section 153C of the Income Tax Act and passing the assessment order under Section 143(3) read with Section 153A was legally valid. The Revenue contended that the Tribunal erred in its interpretation of the law. 2. Retrospective Application of Amendment: Another substantial question of law raised was regarding the retrospective application of the provisions of Section 153C as amended by the Finance (No.2) Act, 2014. The appellant questioned the Tribunal's decision to apply the amended provisions retrospectively for the assessment year 2008-09, despite the amendment being prospective from 01.10.2014. 3. Interpretation of Amended Provisions: The issue of whether the Appellate Tribunal had the power to interpret and apply the amended provisions of Section 153C, which came into effect in 2014, for the assessment year 2008-09 was also a point of contention. The Revenue argued against the Tribunal's authority to read down the amended provisions and apply them to an earlier year. 4. Review of Assessment Order: The Tribunal's decision regarding the assessment order passed under Section 143(3) read with Section 153A was challenged by the Revenue. The appellant disputed the Tribunal's characterization of the assessment order as a review of an earlier assessment, emphasizing the Assessing Officer's mandate under Section 153A. 5. Relevance of Precedents: Lastly, the issue of the Tribunal relying on judgments related to the reopening of assessments under Section 147, such as Kalyanji Mavji & Co. Vs. CIT and CIT Vs. Kelvinator of India Ltd., in the context of an order passed under Section 153A read with Section 143(3) invoking Section 153C, was raised. The appellant argued that the provisions of Section 153C were distinct from those of Section 147. In conclusion, the appeal was dismissed due to the low tax effect falling below the threshold limit set by a circular issued by the Central Board of Direct Taxes. The substantial questions of law raised were left open, with the option for the Revenue to seek restoration of the appeal for further consideration if the tax effect exceeded the prescribed limit.
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