The High Court, relying on CBDT’s Instruction No. 3/2011 dated 9-2-2011, dismissed the department’s appeal as not maintainable on the ground that the tax effect was less than Rs. 10 lakhs. The department filed a SLP in the Supreme Court. HELD allowing the Petition for Full Text Refer Below :
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Petition(s) for Special Leave to Appeal (Civil)……/2011
(CC 13694/2011)
(From the judgement and order(s) in dated 21/02/2011 in ITA
No.379/2011 of The HIGH COURT OF DELHI AT N. DELHI)
C.I.T CENTRAL-III Petitioner(s)
VERSUS
SURYA HERBAL LTD. Respondent(s)
(With appln(s) for c/delay in filing SLP)
Date: 29/08/2011 This Petition was called on for hearing today.
CORAM:
HON’BLE THE CHIEF JUSTICE
HON’BLE MR. JUSTICE K.S. RADHAKRISHNAN
HON’BLE MR. JUSTICE SWATANTER KUMAR
For Petitioner(s) Mr. Goolam E. Vahanvati,AG.
Mr. Rupesh Kumar,Adv.
Mr. Anand Kannan,Adv.
Mr. B.V. Balaram Das,Adv.
For Respondent(s)
UPON hearing counsel the Court made the following
O R D E R
Delay condoned.
Liberty is given to the Department to move the High Court pointing out that the Circular dated
9th February, 2011, should not be applied ipso facto, particularly, when the matter has a
cascading effect. There are cases under the Income – Tax Act, 1961, in which a common principle
may be involved in subsequent group of matters or large number of matters. In our view, in such
cases if attention of the High Court is drawn, the High Court will not apply the Circular ipso
facto. For that purpose, liberty is granted to the Department to move the High Court in two
weeks. The special leave petition is, accordingly, disposed of.
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