CBDT Circulars on Monetary Limits Apply to Pending Appeals: Bombay HC

Case Name : CIT Vs Madhukar K. Inamdar H.U.F. (Bombay High Court)
Appeal Number : Income Tax Appeal (L) No. 1021 of 2008
Date of Judgement/Order : 02/07/2009
Related Assessment Year :

CIT Vs Madhukar K. Inamdar H.U.F. (Bombay High Court)
The case of CIT Vs Madhukar K. Inamdar H.U.F. brought before the Bombay High Court focuses on the applicability of the Central Board of Direct Taxes (CBDT) Circular dated 15-05-2008. The key issue is whether appeals filed before this circular’s issuance but involving a cumulative tax effect of less than Rs. 4 lakhs should be governed by its stipulations. The judgment provides crucial insights into how the circular impacts ongoing and future cases, particularly those with lower tax effects.
Background of the Case
The Commissioner of Income Tax (CIT), Thane, filed an affidavit contending that appeals or petitions involving substantial questions of law of a recurring nature could be filed regardless of the total cumulative tax effect being less than Rs. 4 lakhs. This stance was based on the interpretation that the CBDT Circular dated 15-05-2008, which restricts appeals for tax effects below Rs. 4 lakhs, does not have retrospective effect and should not apply to appeals filed before its issuance.
The CBDT Circular No. 5 of 2008Please become a Premium member. If you are already a Premium member, login here to access the full content.