SC Asks HC to consider whether Low Tax Effect Circular has retrospective effect

Income Tax  Department filed an appeal u/s 260A in 2006 where the tax effect was less than Rs. 10 lakhs.  High Court, relying on Instruction No. 3/2011 Dated 9-2-2011  dismissed the appeal as not maintainable. Income Tax  Department  challenged the decision on the ground that para 11 of Instruction No. 3/2011 Dated 9-2-2011 made it clear that it would apply only to appeals filed on or after 9.2.2011 and not to appeals filed earlier. On Appeal Supreme Court held as under: The tax effect in the present appeal is less than Rs. 10 lakhs. As per the new guidelines of the CBDT, in those cases ...