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TMI Blog2014 (1) TMI 814X X X X Extracts X X X X X X X X Extracts X X X X ..... of doubt or debate - It cannot be stated that only on and from 15.5.2008 the Board desired that on the basis of notional tax effect in cases of loss the appeals should be filed Only because clarification came in the subsequent circular dated 15.5.2008, would not mean that previously the Board desired that such appeals should be filtered out - The notional tax effect would have to be above the limits prescribed by the Board from time to time for presentation of such appeals - In all these cases since it is stated that the notional tax effect would be higher than the limits prescribed by the Board in different circulars - The Tribunal committed an error in dismissing the Revenue’s appeals as being not maintainable - Decided in favour of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being below monitory limit, by impugned judgment and order the learned Tribunal has dismissed the appeal without going into the merits on the ground that tax effect involved is NIL. 4.0. In short, the controversy arose in following factual background. Before the Assessing Officer, the assessee claimed to have suffered loss in the assessment year in question. The Assessing Officer, however, disallowed the claim made by the assessee. Issue ultimately, reached the Tribunal in appeal filed by the Revenue. The Tribunal by the impugned judgment dismissed the appeal holding it as not maintainable on the ground that in either case assessee had suffered loss and in that view of the matter, CBDT s circulars providing monetary limit for filing furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the Tribunal would not be presented. Starting with circular dated 27.3.2000, we find that the said circular provided for limits for preferring appeals to the Tribunal, reference before the High Court and appeal before the Supreme Court as long as the tax effect exceeded Rs.1,00,000/, Rs.2,00,000/and Rs.5,00,000/respectively. Paragraph 3 of the said circular specified the categories where irrespective of the revenue effect, such appeals could be pursued. The term tax effect specified in circular dated 27.3.2000 is nowhere defined and explained in any of the preceding and succeeding circulars. We must, therefore, understand this term in the context of the intention of the Board in limiting the Tax Appeals. 36.We must also remind ours ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... simply because in the year in question, the assessee had earned negative income. 37.The issue can be looked from a slightly different angle. In absence of the Board s circulars issued, which now can be stated to be covered under Section 268A of the Act, there are no limitations on Revenue carrying the issue in appeal either before the appellate Tribunal, the High Court, the Supreme Court. To hold that a particular appeal is not maintainable by virtue of the limitations imposed by the Board in its circular, such limitation must be traced into circular itself. In other words unless and until the appeal is found to be opposed to the directives issued by the Board in its different circulars prevailing from time to time, such an appeal cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peals, is answered in favour of the Revenue and against the assessees. It is held that merely because even as per the Assessing Officer s order, ultimately income of the assessee is negative, the Revenue s appeal before the appellate Tribunal would not be barred by the Board s circular under Section 268A of the Act. It is, however, clarified that the notional tax effect would have to be above the limits prescribed by the Board from time to time for presentation of such appeals. In all these cases since it is stated that the notional tax effect would be higher than the limits prescribed by the Board in different circulars, we are of the view that the Tribunal committed an error in dismissing the Revenue s appeals as being not maintainable. W ..... X X X X Extracts X X X X X X X X Extracts X X X X
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