CBDT Instruction- specifying monetary limits for filing appeals has prospective effect

Brief of the Case:

In the case of CIT vs. Suman Dhamija, the Supreme Court held that CBDT Instruction specifying monetary limits for filing appeals applicable only to appeals filed after that date and not to pending appeals.

Facts of the Case:

The appeals and review petitions preferred by the department before the High Court, were disposed of on the basis of the instructions issued by the Central Board of Direct Taxes dated 9.2.2011.

On aggrieved, the Revenue preferred appeal before the Supreme Court.

Contention of the Revenue:

Nil

Contention of the Assessee:

Nil

Held by the Supreme Court:

Supreme Court observed that all the appeals were preferred prior to 2011, whereas, the instructions of CBDT dated 9.2.2011 clearly indicate in paragraph 11 thereof, that they shall not govern cases which have been filed before 2011, and that, the same will govern only such cases which are filed after the issuance of the aforesaid instructions dated 9.2.2011.

In view of the above, the appeals were allowed, the impugned orders passed by the High Court was set aside and remitted back to the High Court for re-adjudicate the case.