2009 (4) TMI 222

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e assessment year 1991-92 was completed under section 143(3) of the Income-tax Act, 1961, on March 31, 1994, on a total income of Rs. 1,71,110, Rs. 1,79,570 and Rs. 3,36,390. While completing the assessment, the Assessing Officer found that the assessee had claimed the sale proceeds of silver oak trees standing in the coffee estate as not liable to capital gains tax. The Assessing Officer, relying on the decision of the Supreme Court reported in [1957] 32 ITR 705, assessed the net capital gains arising from the sale of silver oak trees at the assessees' coffee estate at Yercaud at Rs. 1,66,640, Rs. 1,66,640 and Rs. 8,10,000. Aggrieved against the assessment so made, the assessees preferred appeals before the Commissioner of Income-tax (Appe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Central Board of Direct Taxes Circular F. No. 279/126/98-IT dated March 27 2000. 6. A Division Bench of this court in the case of CWT v. S. Annamalai [2002] 258 ITR 675, wherein it was held that in order to reduce the litigation for filing Departmental appeals/references before the Income-tax Appellate Tribunal, High Courts and the Supreme Court, the Central Board of Direct Taxes, by Circular F. No. 279/126/98-IT dated March 27, 2000, refixed the monetary limits, however, casting out certain exceptions. The exceptions stated are (i) where Revenue audit objection in the case has been accepted by the Department, (ii) where the Board's order, notification instruction or circular is the subject-matter of an adverse order, (iii) where prosec....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....to be rejected for the reason that if the contention is accepted, one of the sections would become virtually otiose and that cannot be the intention of the law makers." 9. Thus, following the long line of case law reported in CIT v. Rajasthan Patrika Ltd. [2002] 258 ITR 300 (Raj), CIT v. P. S. T. S. Thiruvirathnam and Sons [2003] 261 ITR 406 (Mad), to which one of us is a party (K. Raviraja Pandian J.), CIT v. Digvijay Sing [2007] 292 ITR 314 (MP) and CIT v. Camco Colour Co. [2002] 254 ITR 565 (Bom), this court held that the uniform line of judicial opinion is that if the tax effect is less than what is stated in the circular, the Revenue need not agitate the issue on appeal and that the circular is binding on the Revenue. 10. The sai....