CIT Vs. H. KRISHNA VIJOY ARORA

JUDGEMENT

(1.) All these appeals are filed by the Revenue on 21-5-2008. When the appeals were taken up for hearing, counsel for the respondents referred to Section 268A of the Income Tax Act and Circular dated 18-5-2008 issued by the Central Board of Direct Taxes wherein appeals by Revenue is maintainable before this Court only if tax effect is above Rs. 4 lakhs. In none of these cases, tax effect is above Rs. 4 lakhs and in so much so the contention raised by the assessees is that the appeals are not maintainable. However, learned Senior counsel appearing for the Revenue referred to the decision of the Hon'ble Supreme Court in CIT v. Surya Herbal Ltd., 2011 202 Taxman 462 wherein the Supreme Court held that the High Court can ignore the Circulars and proceed to decide the appeals on merits, if the question involved is substantial and arising in many cases and for subsequent years or in large number of matters. Since the issue raised in these appeals is a substantial question of law, i.e., with regard to the assessment year in which tax deducted at source has to be credited in the assessment of the assessees, we reject the objection of maintainability raised by the respondents and proceed to consider the appeals on merits.