Low Tax Effect Circular not applies to pending appeals – Karnatka HC

When Clause 11 of the instruction No.3/11 dated 09.02.2011 issued by the Board, specifically says that it will be applicable to the cases filed on or after 9.2.2011, the courts holding that it is applicable to the pending cases is against the provision under Section 268A of the Act, Public Interest and the Public Policy. Therefore, we uphold the contention of the revenue that the Instruction No.3 dated 09.02.2011 has no retrospective effect and the appeal filed by the revenue is maintainable. Accordingly, we answer the 1st substantial question of law, in the negative in favour of the Revenue. ...