CBDT Instructions on Monetary Limits for Appeals - Only Prospective Effect
IN Instruction No. dated 09.02.2011, CBDT has fixed monetary limits for filing appeals in the Tribunal, High Courts and Supreme Court.
CBDT has noted that, “in a large number of cases Hon'ble Delhi High Court has summarily dismissed the appeals filed by the department prior to 09/02/11 on the ground that the tax effect involved was less than the revised monetary limits of tax effect involved prescribed by CBDT Instruction No 3/2011 dt 09/02/11. As per Instruction No 3/2011 the revised monetary limit was applicable only for the appeals filed on or after 09/02/11 i.e the date of issue of Instruction. As per para 11 of the Instruction, it was clarified that the appeals filed earlier would be governed by the old instructions operative at the time of filing”.
Board has also referred to the recent order of the Supreme Court in Surya Herbal case, , where it was suggested when the matter has a cascading effect, the instruction should not be applied ipso facto. Please see - 02 09 2011.
The Board has reacted immediately and has circulated a copy of the Supreme Court order and instructed the Chief Commissioners and DGs to take immediate steps to file review petition in High Court pointing out the observations of the Supreme Court.
Board also advises the officers not to send any proposals henceforth to file SLP in such cases.