2015 (8) TMI 522 - SCH - Income Tax

Maintainability of appeal - low tax effect - as decided by HC 2012 (3) TMI 417 - KARNATAKA HIGH COURT in view of the Circular No. 3 of 2011 it is held to be retrospective in operation by this court and it is applicable to pending appeals this appeal is not maintainable on the ground of being less than the monetary limit - Held that - Liberty is given to the Department to move the High Court pointing out that the Circular dated February 9, 2011, 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. For that purpose, liberty is granted to the Department to move the High Court in six weeks time from today. - Decided in favour of revenue by way or remand.

Summary

The Supreme Court granted liberty to the Department to challenge the application of a Circular dated February 9, 2011, in cases under the Income-tax Act, 1961, where a common principle may be involved in subsequent group of matters or large number of matters. The Department was given six weeks to move the High Court for this purpose. The special leave petition was disposed of.