Low Tax Effect Circular cannot apply Ipso Facto – SC

Liberty is given to the Department to move the High Court pointing out that the Circular dated 9th February, 2011, should not be applied ipso facto, particularly, when the matter has a cascading effect. There are cases under the Income Tax Act, 1961, in which a common principle may be involved in subsequent group of matters or large number of matters. In our view, in such cases if attention of the High Court is drawn, the High Court will not apply the Circular ipso facto. SUPREME COURT OF INDIA Petition(s) for Special Leave to Appeal (Civil)…… /2011 (CC 21465/2011) (From the judgme...