2007 (7) TMI 106

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....judgment of the Supreme Court in Britannia Industries Ltd. v. Commissioner of Income Tax, [2005] 278 ITR 546 (SC). The Apex Court by the said judgment has held that the expenses for maintenance of guest house are not subject to exemption or disallowed under section 37(4) of the Income Tax Act. It has also been pointed out that the circular itself provides that when the issue is recurring, an appeal can be preferred. On behalf of the Respondents, their learned counsel has drawn our attention to the judgments of this court in the CIT v. Chemco Colour Company [2002] 254 ITR 565 (Bom). A learned Bench of this court was considering the circular No.  279/126/98-IT dated March 27, 2000. The learned Bench after considering the purport and obje....

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....n the case of CIT v. Abhishek Industries Ltd. [2006] 286 ITR 1 to contend that the appeal by revenue in cases covered by the judgment of the High Court and Supreme Court will still be maintainable irrespective of the circular. It is also pointed out that the Judgment of this court had been considered by the learned Bench of the Punjab and Haryana High Court. 3. A Judgment of a Coordinate Bench of this court would be binding on us unless we propose a different view, in which event, normally the Court should direct the matter be heard by a larger Bench. We however, find that in spite of the judgment in Chemco Colour Co. [2002] 254 ITR 565 (Bom). and Topiwala [2006] 284 ITR 379, the learned Bench constituting the same members, has been entert....

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....rcular, would not stand in a way of this court exercising its supervisory jurisdiction. That what is being held is an appeal will make no difference.  In our opinion, para 3 of the circular dated October 24, 2005 June 24, 2005 supports the view that we have taken. 7. In the light of that in our opinion, the circulars and the judgments which have considered the said circular can be read as under : (1) In those cases where the issue is not covered by the judgment of the Supreme Court or of this court, in all such cases, the circular will apply and Revenue department would be bound by the circulars and the appeals as filed will have to be rejected, unless they fall within the exceptions as contained in the circular. (2) In all those ma....