2009 (4) TMI 819

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....oremethenes, etc. For the assessment year 1997-98, the assessee claimed a sum of Rs. 3,43,116 as expenditure incurred towards rent/insurance/repairs in respect of guest/ transit house. The Assessing Officer disallowed the same on the ground that the provisions of section 37(2A) is very specific which disallow any expenditure incurred on the maintenance of a residential accommodation in the nature of the guest house and brought the same to tax. The Commissioner of Income-tax (Appeals) allowed the appeal relying on the decision of the Income-tax Appellate Tribunal wherein it has been held that the guest house expenses with observation that embargo imposed by section 37(3) applies to the items mentioned in sub-section (1) thereof and not to th....

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....n 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 statutory ....