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| The Tax Publishers2020 TaxPub(DT) 3061 (Mad-HC) INCOME TAX ACT, 1961
Section 260A
Proper interpretation of the Circular issued by CBDT is that if the tax effect is lower than the threshold limit, revenue cannot file nor pursue the appeals, which are pending either before the Tribunal or before this Court or before Supreme Court. Accordingly, appeals were dismissed on account of the low tax effect. In the event the tax effect in the respective cases was above the threshold limit fixed in the said circular, liberty was granted to the revenue to make a mention to this Court to restore the appeals to be heard and decided on merits.
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Appeal (High Court) - Agricultural income - Tax effect was lower than the threshold limit -
Issue arose for consideration as to whether Tribunal was right in presuming the assessee earned agricultural income merely relying on Chitta and Adangal extracts issued by VAO despite the fact that no evidences pertaining to agricultural activities were furnished by assessee. Held: It was submitted by Revenue that the tax effect was lower than the threshold limit, the revenue might be permitted to pursue the matters together so that in the event of the revenue succeeding in the appeals, the exchequer will be able to recover tax. Proper interpretation of the circular issued by CBDT is that if the tax effect is lower than the threshold limit, the revenue cannot file nor pursue the appeals, which are pending either before the Tribunal or before this Court or before Supreme Court. Accordingly, appeals were dismissed on account of the low tax effect. In the event the tax effect in the respective cases was above the threshold limit fixed in the said circular, liberty was granted to the revenue to make a mention to this Court to restore the appeals to be heard and decided on merits.
REFERRED : Asstt. CIT v. S. Duraipandi & S. Thalavaipandian (AOP) [I.T.A. Nos. 1745 to 1751/Mds/2010 And C.O. Nos. 138 to 144/Mds/2010, dt. 29-4-2011]
FAVOUR : In assessee's favour
A.Y. :
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