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February 2016

References and appeals to High Court – Sections 256 and 260A – Revised monetary limit of tax effect of Rs.20 lakh in CBDT’s Circular No. 21/2015 shall apply to pending references in High Courts u/s. 256 as they apply to pending appeals u/s. 260A as the objective of the Circular would stand fulfilled on application to references u/s. 256 pending in HCs where tax effect is less than Rs.20 lakh

By K. B. Bhujle Advocate
Reading Time 1 mins
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CIT vs. Sunny Sounds (P.) Ltd.; [2016] 65 taxmann.com 162 (Bom):

By a Circular No. 21/2015, CBDT prescribed tax limit of Rs.20 lakh for filing appeals before the High Court and the said limit is applicable for pending appeals also. The Bombay High Court has clarified that the circular is equally applicable to the pending references. The High Court held as under:

“Revised monetary limit of tax effect of Rs.20 lakh in CBDT’s Circular No. 21/2015 shall apply to pending references in High Courts u/s. 256 as they apply to pending appeals u/s. 260A as the objective of the Circular would stand fulfilled on application to references u/s. 256 pending in HCs where tax effect is less than Rs.20 lakh. Accordingly, since tax effect less than Rs.20 lakh, instant reference application returned unanswered and question of law raised left open to be considered in an appropriate case.”

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