COMMISSIONER OF INCOME TAX Vs. MANGILAL JAIN

JUDGEMENT

(1.) THIS appeal as also the connected appeals, being IT Appeal No. 202 of 2007, IT Appeal No. 203 of 2007, IT Appeal No. 204 of 2007 are being decided by this common order as they raise the following substantial question of law :

(2.) BY circular dt. 24th Oct., 2005 [(2005) 198 CTR (St) 41], the CBDT laid down certain monetary limits to emphasise upon the Department that if the tax effect of the case was below the monetary limits prescribed in cl. 2 of the said circular, the Department should not file any appeal. An exception was, however, carved out in the cases covered by para 3 of the said circular, which reads as under :

(3.) WE have considered the contention raised by the learned senior counsel. Before considering the cases cited by the learned senior counsel, we may point out that a Division Bench of this Court has held in CIT vs. Suresh Chand Goyal (2007) 209 CTR (MP) 410 : 2007(3) M.P.L.J. 60 that in cases where tax effect is below Rs. 2,00,000, Revenue cannot file appeal contrary to the terms of circular which is binding on the Department. The relevant discussion contained in para 16 of the said report reads as extracted below :