2009 (4) TMI 368

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....y, the Assessing Officer noticed that interest granted under section 244A amounts to Rs. 47,151 for the assessment year 1996-97 during the previous year relevant to the assessment year 1998-99 was omitted to be taxed. Since there was a mistake apparent from records, notice under section 154 was issued to the assessee. In reply, the assessee contended that since the assessee is a co operative society, engaged in the business of banking, the entire interest income was exempt under section 80P(2)(a)(i) of the Income-tax Act. The Assessing Officer rejected the claim since interest under section 244A was not derived from the business of banking. Aggrieved by that order, the assessee preferred an appeal before the first appellate authority, who c....

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.... filing an appeal by the Revenue is Rs. 2 lakhs, however, with certain exceptions. The exceptions are not applicable to the facts of the present case and admittedly, the tax effect in this case is lesser than the monetary limit prescribed in the said circular. Hence, it would not be proper on the part of the Revenue to file an appeal, which is against its own circular. It may be noted that this court considered a similar issue in the case of CIT v. Associated Electrical Agencies [2007] 295 ITR 496 (Mad), wherein this court held as follows (page 500): "We are of the considered view that none of the exceptions stated in the circular are applicable to the facts of the present case. The circular was stated to be issued by invoking the statuto....