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TMI Blog2009 (4) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... ing, 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 citing the decision CIT v. Ramanathapuram District Co-operative Central Bank Ltd. [2002] 255 1W 423 (SC) deleted the addition of Rs. 47,151. Held that- dismissing the appeal, that the tax effect involved was less than the amount prescribed under the CBDT Circular F.No. 279/126/98-ITJ, dated March 27, 2000. The revenue was bound by the Circular. - 1612 of 2005 - - - Dated:- 22-4-2009 - K. RAVIRAJA PANDIAN and M. M. SUNDRESH JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r impugned observing that the circular applied to the instant case and also there was no exceptional circumstances specified in the circular, following the decision of this court in CWT v. S. Annamalai [2002] 258 1TR 675, dismissed the appeal. Hence, the present appeal by the Revenue questioning the correctness of the order passed by the Tribunal. 2. The appeal was admitted on the following substantial question of law: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in dismissing the appeal filed by the Revenue on the ground that the tax effect was less than the monetary limit prescribed in the Board's Circular dated March 27, 2000, without considering the fact that it was o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vated to a higher pedestal than the other provision, of course, unless or otherwise specifically stated either in the scheme, the Act or in the provision itself that a particular provision is subjected to or qualified by any other provi sion or the provision can be given effect to notwithstanding anything contained in any other provisions by assigning overriding effect. Hence, the contention that notwithstanding the circular, which was issued under section 119 of the Income-tax Act, the appeal could be filed by the Revenue under section 260A has to be rejected for the reason that if the contention is accepted, one of the section would become virtually otiose and that cannot be the intention of the law makers." 5. Thus, following the lon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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