MADAN B.LOKUR, J. - (1.) The tax effect in this case is hardly Rs.86,000/-.
(2.) Our attention has been drawn to Instruction No.1979 dated 27th March, 2000 issued by the Government of India, Ministry of Finance, Department of Revenue (Central Board of Direct Taxes). This Instruction pertains to monetary limits for filing departmental appeals / references before the Income Tax Appellate Tribunal, High Courts and Supreme Court. The Instruction also concerns measures for reducing litigation.
(3.) It has been mentioned in the Instruction that the Central Board of Direct Taxes (CBDT) has decided that appeals will be filed only in cases where the tax effect exceeds the revised monetary limits which, in respect of appeals filed in the High Court under Section 260A of the Income Tax Act, 1961 is Rs.2 lakhs. It has also been mentioned in the Instruction that the monetary limits would apply with reference to each case taken singly. This has been clarified as follows: - "In other words, in group cases, each case should individually satisfy the new monetary limits. The working out of monetary limits will therefore not take into consideration the cumulative revenue effect as envisaged in Board's earlier Instruction referred to above.";