COMMISSIONER OF INCOME TAX Vs. BAJAJ PROCESSORS LTD

JUDGEMENT

(1.) REVENUE has challenged the judgment of the Tribunal dated 11.01.2008. We had admitted the appeal and framed following substantial questions of law for consideration : "Whether the Appellate Tribunal is right in law and on facts in deciding the appeal of the revenue without going into merits on the ground that the tax effect involved in the assessee case is nil, though as per the Board's instruction No. 5/08, in loss cases the notional tax effect is to be considered?"

(2.) IN short, the controversy arose in following factual background. Before the Assessing Officer, the assessee claimed to have suffered loss in the assessment year in question. The Assessing Officer, however, disallowed the claim made by the assessee. Issue ultimately, reached the Tribunal in appeal filed by the Revenue. The Tribunal by the impugned judgment dismissed the appeal holding it as not maintainable on the ground that in either case assessee had suffered loss and in that view of the matter, CBDT's circulars providing monetary limit for filing further appeal would render the Revenue's appeal not competent.

(3.) IN the result, Tax Appeal is allowed. Judgment of the Tribunal is quashed. Questions are answered in favour of the Revenue. The proceedings are remanded to the Tribunal for consideration of appeal on merits.