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Issues:
1. Applicability of circular issued by CBDT on acquisition proceedings under section 269F (6) of the IT Act. 2. Jurisdiction of appellate authority to consider circulars issued by CBDT. 3. Binding nature of beneficial circulars of CBDT on Revenue in the administration or implementation of the Act. Analysis: 1. The appeal involved a challenge against the order of the Competent Authority acquiring a property under section 269F (6) of the IT Act. The property in question was purchased by the transferee for an apparent consideration below Rs. 5 lakhs, leading to a dispute regarding the applicability of a circular issued by CBDT regarding the initiation of acquisition proceedings for properties with apparent consideration below Rs. 5 lakhs. 2. The appellant's counsel argued that the appellate proceedings are a continuation of the original proceedings, allowing the Tribunal to consider the CBDT circular and drop the acquisition proceedings. Citing judgments from various High Courts and the Supreme Court, the counsel contended that the Tribunal had the jurisdiction to take cognizance of the circular and urged for the annulment of the Competent Authority's order. 3. On the other hand, the Senior Departmental Representative argued against the applicability of the CBDT circular, relying on judgments that emphasized the independence of judicial powers from administrative directives. The representative contended that the circular should be ignored and highlighted that it was applicable from a specific date and only to proceedings before the IAC (Acquisition), not the Tribunal. 4. The Tribunal, after careful consideration of the arguments, referred to previous judgments emphasizing that appellate proceedings are a continuation of the original proceedings, granting the appellate authority the power to substitute its discretion. The Tribunal also noted that beneficial circulars of CBDT are binding on the Revenue in the administration or implementation of the Act, even if they deviate from the provisions of the Act. 5. The Tribunal concluded that the CBDT circular was beneficial and administrative in nature, applicable to all pending proceedings before the assessing or appellate authority. Relying on previous decisions, the Tribunal held that it had the jurisdiction to consider the circular in pending appeals and vacated the order of the Competent Authority, thereby dropping the acquisition proceedings against the assessee. 6. As a result of vacating the Competent Authority's order based on the CBDT circular, the Tribunal deemed it unnecessary to delve into the merits of the original order. Consequently, the appeal was allowed in favor of the transferee, highlighting the significance of the CBDT circular in determining the outcome of the acquisition proceedings.
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