Beneficial CBDT circular applies to pending acquisition proceedings through appeal until finality is reached.

A beneficial CBDT circular issued to ensure early finalisation of acquisition proceedings under Chapter XX-A applied to matters still pending in appeal and not yet final under section 269I. The proceedings were treated as one continuous legal process from the competent authority stage through appeal, so the circular could not be confined only to cases pending before the competent authority. The contrary view was rejected, and the issue was answered in favour of the assessee, with the circular held applicable to acquisition matters that had not attained finality.

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Issues: Whether Circular No. 455 dated 16 May 1986 applied to acquisition proceedings under Chapter XX-A of the Income-tax Act, 1961 that were pending in appeal and had not attained finality.

Analysis: The circular was issued under the Board's power to ensure early finalisation of proceedings and was beneficial in character. The expression used in the circular was not confined to the stage before the competent authority; acquisition proceedings continued through appeal and were part of one legal proceeding until finality. The pendency of an appeal meant that the proceedings had not ended, and authorities were bound to give effect to the circular so long as the matter had not attained finality under section 269I. The view that the circular applied only to proceedings pending before the competent authority was rejected.

Conclusion: The circular applied to all pending acquisition proceedings, including those pending in appeal, and the issue was answered in favour of the assessee.

Final Conclusion: The appeal succeeded, and the CBDT circular was held applicable to acquisition matters that were still pending and had not attained finality.

Ratio Decidendi: A beneficial circular issued by the Board under the Act applies to acquisition proceedings that remain pending through the appellate stages until they attain finality, and such proceedings are to be treated as one continuous legal proceeding.

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