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TMI Blog2018 (7) TMI 2171X X X X Extracts X X X X X X X X Extracts X X X X ..... es Bench of Hon'ble Supreme Court in the case of M/s. Gemini Distilleries (supra) came to be explained by a later decision of the Hon'ble Supreme Court in the case of DIRECTOR OF INCOME-TAX vs. S.R.M.B. DAIRY FARMING (P.) LTD. reported in (2018) 400 ITR 9 (SC) decided on 23.11.2017 about the retrospective application of the CBDT Circulars with regard to monetary limits for maintaining the pending appeals before the Hon'ble High Court under Section 260A of the Income Tax Act. The Hon'ble Supreme Court in S.R.M.B.Dairy Farming (P.) Ltd. (supra) held as under:- "Appeal to High Court - Monetary limits for litigation by Department - Circular to apply to pending appeals - but Circular not to be applied by court ipsofacto when matter has cascading effect or where common principles involved in large number of matters - Income Tax Act, 1961 ss. 260A, 268A - Instruction No.3 of 2011, dated 9-2-2011. The view adopted by the Delhi High Court making the circular applicable to pending matters came up before a three- Judges Bench of this Court in SLP (C) No.CC 13694 of 2011 titled CIT v. Surya Herbal Ltd. when the following order was passed on August 29, 2011: "Delay condoned. Liberty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the judgment of this court in Suchitra Components Ltd. v. CCE on the general principle of application of circulars. Reliance was placed on the view expressed in CCE v. Mysore Electricals Industries Ltd. opining that a beneficial circular has to be applied retrospectively while an oppressive circular has to be applied prospectively. 25. We are of the view that the mater needs to be put to rest and a clarity be obtained in view of the impact of this issue on pending cases before the High Courts as well as the cases which have been disposed of by various High Courts by applying Circular of 2011 to pending litigations. In our view the matter has been squarely put to rest taking further care of the interest of the Revenue by the order passed by the three-Judges Bench of this court in Surya Herbal Ltd. Case (supra), which had put two caveats even to the retrospective application of the circular. The subsequent orders have been passed by the two-Judges Bench without those orders being brought to the notice of the court, a duty which was cast on the Department to have done so to avoid the ambiguity which has arisen. Thus, the said view of the three- Judges Bench would hold water an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty orders, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against. 5. The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If, in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit specified in para 3. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. In other words, henceforth, appeals can be filed only with reference to the tax effect in the relevant assessment year. However, in case of a composite o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the same assessee for any other assessment year, or in the case of any other assessee for the same or any other assessment year, if the tax effect exceeds the specified monetary limits. 8. In the past, a number of instances have come to the notice of the Board, whereby an assessee has claimed relief from the Tribunal or the Court only on the ground that the Department has implicitly accepted the decision of the Tribunal or Court in the case of the assessee for any other assessment year or in the case of any other assessee for the same or any other assessment year, by not filing an appeal on the same disputed issues. The Departmental representatives/counsels must make every effort to bring to the notice of the Tribunal or the Court that the appeal in such cases was not filed or not admitted only for the reason of the tax effect being less than the specified monetary limit and, therefore, no inference should be drawn that the decisions rendered therein were acceptable to the Department. Accordingly, they should impress upon the Tribunal or the Court that such cases do not have any precedent value and also bring to the notice of the Tribunal/ Court the provisions of sub section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e limits may not be considered henceforth. 13. This Circular will apply to SLPs/appeals/cross objections/references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/ appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed." 14. The above may be brought to the notice of all concerned. 15. This issue under Section 268A of the Income-tax Act 1961. 16. Hindi version will follow. Sd/- (11/07/2018) (Neetika Bansal) Director (ITJ), CBDT, New Delhi. 4. Learned counsel for the appellant-Revenue with regard to paragraph No.20 of the judgment of the Hon'ble Supreme Court in the case of DIRECTOR OF INCOME TAX vs. S.R.M.B. DAIRY FARMING (P.) LTD. quoted above and in the case of CIT vs. SURYA HERBAL LTD. (supra) has submitted before us that the present appeal filed by Revenue neither has any cascading tax effect nor it involves any issues of common principles involved in a group of matters or a large number of matters. Thus, the decision initially pointed out by the learned counsel for the appellant- Revenue in the case of CIT vs. M/S.GEMINI DISTILLERIES do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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