CIT Vs. SHERNO LTD.

JUDGEMENT

(1.) REVENUE has filed this appeal challenging judgment of the Income -tax Appellate Tribunal dated 27 -7 -2012. Following questions have been presented for our consideration:

(2.) IN view of admitted fact that tax appeal involves monetary effect which is below the minimum prescribed by CBEC in its circular dated 9 -2 -2011, permitting the Revenue to file appeal in High Court, we have not considered the question No. (1) on merits at all. Instead we have heard learned counsel Shri Parikh for the Revenue on question No. 2, which touches the aspect of entertaining this appeal even on the face of low tax effect. The question itself suggests that according to the Revenue the appeal falls in one of the exceptions envisaged under the circular itself. We may reproduce the exception carved out in the said circular subject to which a tax appeal even though involving tax effect lower than that prescribed in the circular, Revenue could carry the matter further in appeal. Such exceptions read as follows:

(3.) REVENUES case as can be discerned from question No. 2 noted above is that since Constitutional validity of the provisions of the Act ore the Rule are under challenge the appeal may be entertained. Learned counsel Shri Parikh for the Revenue was at a loss to explain in what manner the validity of statutory provision is involved in the present appeal. Admittedly vires of statutory provision is nowhere in question. He however, strenuously urged that decision of the Tribunal is palpably erroneous.