Law:

Section:

Section 260A, read with section 268A of the Income-tax Act, 1961 - High Court - Appeal to - Whether in view of fact that CBDT Instruction No. 5/2008, dated 15-5-2008 has prescribed monetary limit of Rs. 4 lakhs vis-a-vis appeals under section 260A, whereas in instant case original tax liability of assessee was merely Rs. 1.34 lakhs, it being less than monetary limit prescribed by aforesaid Instruction, revenue's appeal would be barred and, thus, it was to be dismissed - Held, yes CBDT's, Circular, Notifications and Instructions : Instruction No. 5 of 2008, dated 15-5-2008 FACTS The assessee was one of the persons named in the charge-sheet filed by the CBI for his alleged involvement in defalcation of public money. The assessment was completed at the total assessable income of Rs. 2,77,790 and the tax liability was determined to be Rs. 1,34,184. On appeal, the Commissioner (Appeals) confirmed the assessment. The assessee thereafter, carried the issue to the Tribunal which remitted the matter to the file of the Assessing Officer for reassessment in the light of decision of the criminal court after providing reasonable opportunity of hearing to the assessee. In effect, the appeal was, thus, allowed. The revenue filed instant appeal contending, inter alia, that income-tax proceeding being separate and distinct from the criminal proceeding, the assessment of tax liability could by no means be held up or deferred till the final decision was taken in the latter. At the threshold, the maintainability of the instant appeal was questioned by the assessee, on the basis of Instruction No. 5/2008, dated 15-5-2008, of the CBDT. HELD Instruction No. 5/2008, dated 15-5-2008 has prescribed the monetary limit of Rs. 4 lakhs vis-a-vis appeals under section 260A before this Court. It stipulates that appeals of the category as mentioned in paragraph 3 would be preferred only in cases where the tax effect exceeds monetary limits as provided therein. The 'tax effect' has been defined as difference between the tax on the total income assessed and tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issue against which appeal…

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