IN THE HIGH COURT OF BOMBAY AT GOA TAX APPEAL NO. 14 OF 2006 THE COMMISSIONER OF INCOME TAX, PANAJI-GOA. ... Appellant Versus DOLPHIN AND COMPANY, VASCO-DA-GAMA, GOA ... Respondent Mrs. Asha Dessai, Advocate for the Appellant. Mr. R. Srinivasan with Mr. Sudin Usgaonkar, Advocate for the Respondent. Coram:- D. G. KARNIK & F. M. REIS, JJ. Date:- 20th September, 2010 P.C. 1. Heard the learned Counsel for the parties. The learned Counsel for the respondent submits that the net tax effect in the appeal, even if the question is answered in favour of the Revenue, would be Rs.1,66,373/- and invites our attention to the order dated 8th March, 2001 passed by the Joint Commissioner of Income Tax as an Assessing Officer. The net amount tax inclusive of interest assessed by the Assessing Officer was Rs.1,66,373/-. The Revenue accepting the order had not filed any appeal against this order but it was the assessee who filed appeal against this order. Thus, the maximum tax liability of the assessee in the present appeal is restricted to Rs.1,66,373/- which is less than Rs.4,00,000/-. 2. In a circular issued by CBDT, a policy decision has been taken not to file an appeal where the net effect is less than Rs.4,00,000/-. In Commissioner of Income Tax V/s Pithwa Engg. Works, (2005) 276 ITR, this Court has held that the circular has retrospective application in the sense that it applies even to the appeals which were pending on the date of the issuance of the circular. This Court further held that the Revenue is bound by the circular which applies to the old appeals having net tax liability of less than Rs.4,00,000/-. Since in this appeal, the net tax is less than Rs.4,00,000/-, the appeal is liable to be dismissed and is accordingly dismissed. D. G. KARNIK, J. F. M. REIS, J. at*