2003 (10) TMI 18

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....ere allowed and the claim of the assessee rejected. According to learned counsel for the appellant, the following three substantial questions of law are involved in the appeal and, therefore, the same deserves to be admitted: "(i) Whether the Tribunal, on the facts and in the circumstances of the case, erred in law in not dismissing the appeals of the Department/Revenue in view of the Board's Circular No. F. No. 279/126/98-ITJ, dated March 27, 2000? (ii) Whether, on an application of the correct principles of law and in view of the judicial pronouncements of the Supreme Court and High Court(s), was the Tribunal justified in law in holding that the income of the assessee-appellant on account of temporary leasing of asset for commerc....

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....ore us. In any case, the Board's circular is only an instruction issued to the income-tax authorities not to file appeals where the tax effect is less than Rs. 1,00,000. The Tribunal is not bound by any such instruction and once the Department files an appeal, the Tribunal was bound to decide the same on the merits. This question, in our opinion, is not a question of law. Re. (ii): The assessee had purchased land with building for Rs. 46,60,000 on April 11, 1992, and a total investment of Rs. 14,80,319 had been made during the relevant assessment year for further construction of the building. This property was let out to its sister concern, M/s. Swati H/L Industries, in which the assessee's husband and her sons were partners. Its inco....