RANCHI, India, March 28 -- Jharkhand High Court issued the following order on Feb. 24:
1. Heard learned counsel for the parties.
2. The learned counsel for the revenue submits that though the tax effect may be less than Rs.2.00 cores, the exception in Clause 3.1(f) of the Central Boad of Direct Taxes Circular No.5 of 2024 dated 15th March, 2024 would apply. The exception in Clause 3.1(f) of the aforesaid circular reads as follows:
"3.1(f). Where the tax effect is not quantifiable or not involved, such as the case of registration of trusts or institutions under sections 10(23C), 12A/12AA/12AB of the Act, order passed under Section 263 of the Act etc. The reference to cases involving sections referred here, where it is not possible to quantify tax effect or tax effect is not involved, is for the purpose of illustration only."
3. In the present case, in the de novo assessment carried out by the revenue, an addition of Rs.3.50 crores has been ordered. This is evident from the assessment order dated 30th March, 2023. If the addition is Rs.3.50 crores, then, the tax effect, even going by the highest rates, would be below Rs.2.00 crores. In any event, since the tax effect is quantifiable, the exception under Clause 3.1(f) referred to above will not apply.
4. Accordingly, this appeal is disposed of on the grounds of low tax effect by leaving open the question of law.
5. Pending I.A. does not survive and is disposed of.
Disclaimer: Curated by HT Syndication.
