Low Tax Effect Circular has retrospective effect & applies to pending appeals

CIT vs. Sureshchandra Durgaprasad Khatod (HUF) (Gujarat High Court)

The department filed an appeal in the High Court where the tax effect was less than Rs. 10 lakhs. The assessee argued that in view of Instruction No. 3 of 2011 dated 9.2.2011, the appeal was not maintainable. The department argued that the said Instruction made it clear that it applied only to appeals filed the date of its issue and had no retrospective effect. HELD by the High Court dismissing the appeal: