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TMI Blog2007 (4) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... law raised by the Revenue under section 256(1)(c) of the Income-tax Act, 1961. It is contended by the Revenue that even though the tax effect in each assessment year is less than Rs. 30,000, as per the Board's clarificatory circular dated June 29, 2000, where the order of the Tribunal is for more than one assessment year, then cumulative tax effect should be taken into consideration. Accordingly it is submitted by the Revenue that in the present case, the Tribunal in the case of Shri Arvind Kedar has passed a combined order for the assessment years 1985-86, 1986-87 and 1987-88 and a combined order in the case of Shri Ajay Kedar for the assessment years 1985-86, 1986-87 and 1987-88. The cumulative tax effect in the case of each assessee f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eference to each case taken singly. In other words, in group cases, each case should individually satisfy the new monetary limits. The working out of monetary limits will therefore not take into consideration the cumulative revenue effect as envisaged in Board's earlier Instruction referred to above. 3. Adverse judgments relating to the following should be contested irrespective of revenue effect: (i) Where Revenue Audit objection in the case has been accepted by the Department. (ii) Where Board's order, notification, instruction or circular is the subject-matter on an adverse order. (iii) Where prosecution proceedings are contemplated against the assessee. (iv) Where the constitutional validity of the provisions of the Act are un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment years 1995-96 and 1996-97, the monetary limit as prescribed in Instruction No. 1979 would apply taking together the assessment years 1995-96 and 1996-97; (2) even if the issues involved in an appeal under consideration are already pending in appeal before the appellate authorities, all subsequent appeals will now be filed for particular assessment year only as indicated in (i) above, if the tax effect exceeds the prescribed monetary limit; (3) in paragraph 3(iii) of the Instruction, it has been stated that the adverse judgments should be contested irrespective of the revenue effect in a case where prosecution proceedings are contemplated against any assessee. However, it is possible that that prosecution proceeding may be co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax (Appeals) were allowed on the merits. It is the applications filed by the Revenue under section 256(1) of the Act that are dismissed by the Tribunal on the ground that the tax effect in each case is less than Rs. 30,000. Even if the cumulative tax effect involved in the order passed by the Tribunal in each assessee's case exceeds Rs. 1,00,000 and the Tribunal were to forward statement of the case, in the light of the decision of this court in the case of CIT v. Pithwa Engg. Works reported in [2005] 276 ITR 519 the reference would be returned unanswered if the cumulative tax effect in each case is less than Rs. 2,00,000. It is not in dispute that the cumulative tax effect involved in the order of the Tribunal in each assessee's c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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