Losses of Previous AY not to be Included while Computing Tax Effect Under CBDT Circular: Delhi HC

Losses of Previous AY Not to be Included While Computing Tax Effect Under CBDT Circular: Delhi HC The Delhi High Court has clarified that losses of previous assessment years (AYs) should not be included while computing the "tax effect" for the purpose of the CBDT circular on monetary limits for filing appeals. This ruling ensures that appeals are not dismissed merely because past losses reduce the current year's tax effect below the threshold. It provides important guidance for tax authorities and assesses on calculating the "tax effect" to determine the maintainability of appeals.