SATISH CHANDRA, J. - (1.) THE present appeal is filed by the department against the impugned order dated 27th April 2007 passed by the Income Tax Appellate Tribunal, Agra in ITA No. 452/Agr/2004 for the assessment year 2001 -02.
(2.) AS per the instruction No. 3 of 2011 dated 9th February 2011 issued by the Central Board of Direct Taxes (C.B.D.T.), the Department need not to file the appeals before the High Court in cases, where the tax effect does not exceed monetary limits i.e. Rs. Ten lacs, under Section 260 -A of the Income Tax Act.
(3.) IT is also mentioned in the instructions (Clause 4) that in the case where the return loss is reduced or assessed as income, the tax effect will include notional tax on disputed additions. In case of penalty orders, tax effect will mean quantum of penalty deleted or reduced in the order to be appealed againt. This Court in the case of CIT vs. Shyam Biri Works, Allahabad ITA No. 172 of 2004, today observed that "the above mentioned instructions is applicable to the pending appeals in various Courts and Tribunals unless it is pointed out by the Department that the appeal would have cascading effect in other assessment years of the assessee or that it is within the exception provided in the instructions that was issued at the time when the appeal was presented".;