2012 (9) TMI 542 - SCH - Income Tax

Application of Circular dated 9th February 2011 - Held that - Liberty is given to the Department to move the High Court pointing out that the Circular dated 9th February 2011 (regarding monetary limit of appeals by the Department) should not be applied ipso facto particularly when the matter has a cascading effect. There are cases under the Income Tax Act 1961 in which a common principle may be involved in subsequent group of matters or large number of matters. In our view in such cases if attention of the High Court is drawn the High Court will not apply the Circular ipso facto. See Surya Herbal Ltd (2011 (8) TMI 137 - SUPREME COURT OF INDIA)

Summary

The Supreme Court dismissed the special leave petition for the Assessment Year 1987-88, but allowed the Department to challenge the Circular dated 9th February, 2011, in the High Court within two weeks.