2020 (6) TMI 838 - HC - Income Tax

Maintainability of revenue appeal on low tax effect - HELD THAT - As per Circular No.17/2019 dated 08.8.2019 issued by the Central Board of Direct Taxes monetary limit for filing or pursuing an appeal before the High Court has been increased to Rs. 1 Crore. It is further submitted that the tax effect in this case is less than the threshold limit. In the light of the said submissions the above tax case appeal is dismissed on account of the low tax effect. The substantial questions of law framed are left open.

Summary

The High Court of Madras dismissed the appeal filed by the Revenue under Section 260A of the Income Tax Act, 1961 due to low tax effect, as per Circular No.17/2019. The appeal was against an order dated 09.01.2014 made in I.T.A. No.1471/Mds/2009 for the assessment year 2004-05. The substantial questions of law raised in the appeal were left open for future consideration if the tax effect exceeds the threshold limit of Rs. 1 Crore.