Small Tax Effect: Monetary Limit To Prefer An Appeal Before The Supreme Court Is Rs. 2 crores: Supreme Court

The Supreme Court disposed of the appeal on the ground of low tax effects. The division bench of Justice M.R. Shah and Justice Sudhanshu Dhulia observed that the monetary limit to file an appeal before the Supreme Court is Rs. 2 crores.

The respective parties contended that the tax effect in both the appeals for the relevant assessment years (1995–96 and 1996–97) would be less than Rs. 2 crores, which is the monetary limit to file an appeal before the Supreme Court, as per Circular F.No.390/Misc/115/2017-IC dated August 22, 2019, issued by the Central Board of Indirect Taxes and Customs (CBIC).

As per the CBIC circular dated August 22, 2019, the monetary limit below which an appeal cannot be filed in CESTAT, the High Court, or the Supreme Court is Rs. 50,00,000, Rs. 1,00,00,000 and Rs. 2,00,00,000 respectively.

"On the ground of low tax effect only, the present appeals stand disposed of. However, the question of law is kept open," the court said.

Case Title: CIT Versus Swapnil Finance Pvt. Ltd.

Citation: Civil Appeal No. 50 of 2010

Date: 30.11.2022

Counsel For Appellant: Advocates Balbir Singh, Arijit Prasad, Preeti Rani, Manish Pushkarna, Gargi Khanna, Shashank Bajpai, Samarvir Singh, Prashant Singh, Shyam Gopal, Prasenjeet Mohapatra, Raj Bahadur Yadav

Counsel For Respondent: Advocates Amar Dave, P. S. Sudheer, Shruti Jose

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