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TMI Blog2011 (3) TMI 784X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Whether the ITAT has the power under section 253(2) of the Income-tax Act, 1961 to give direction as to which appeals can be filed by the department on the strength of the department's internal instructions providing guidelines for filing appeal on the basis of monetary limits? 3. Whether the ITAT was justified even otherwise in dismissing the appeal even though at the time of filing the appeal before the ITAT it was within the monetary limit and was in conformity with the guidelines prescribed by the CBDT instructions applicable at that point of time?" 2. By Circular dated 24-10-2005, the Central Board of Direct Taxes laid down certain monetary limits to emphasise upon the Department that if the tax effect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground, the Tribunal took into account the decision of the Bombay High Court in CIT v. Pithwa Engg. Works [2005] 276 ITR 519 to the effect that the Circular of the Board also applies to the pending cases. Learned senior counsel for the revenue has, however, pointed out that Rajasthan High Court in decision in CIT v. Rajasthan Patrika Ltd. [2002] 258 ITR 300/125 Taxman 819 has held that the High Court ought not to have dismissed appeal or rejected the reference merely on account of the pecuniary limits fixed with regard to the tax effect. Reference has also been made to the decision of the Supreme Court in CIT v. Hero Cycles (P.) Ltd. [1997] 228 ITR 463/94 Taxman 271 to the effect that Circulars are not binding on Appellate Authorities, Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... khs should not be filed by the Revenue and placed reliance on the decision of the Bombay High Court in the case of CIT v. Camco Colour Co. LTR Vol. 254 (2002) 565. Learned counsel for the respondent also relied upon the decision of the Supreme Court in the cases of Navnit Lal C. Javeri v. Sen (K.K.), ACC of I.T., (1965) 56 ITR 198 (SC); Ellerman Lines Ltd. v. CIT [1971] 82 ITR 913 (SC) and Varghese (K.P.) v. ITO [1981] 131 ITR 597 (SC), to contend that the circular issued by the Central Board of Direct Taxes is binding on all the officers and Commissioners and appeal or reference contrary to the instructions issued in the Circular will not be considered by the Courts and the Division Bench of the Bombay High Court was satisfied that the Boa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orums. In cases where no such procedure has been devised, it is expected that while filing appeal in non-adherence of the Circular, the Department would place material before the Appellate Forum that the case falls within the excepted category and, therefore, is not covered by the restraint contained in the Circular. The learned Senior Counsel for the appellant has also invited attention to the decision of the Punjab & Haryana High Court in Rani Paliwal v. CIT [2004] 268 ITR 220/136 Taxman 135, of Delhi High Court in CIT v. Blaze Advertising (Delhi) (P.) Ltd. [2002] 255 ITR 460/122 Taxman 468 and of Madras High Court in CIT v. Kodananad Tea Estates Co. [2005] 275 ITR 244. We are, however, of the view that, as held by this Court in Suresh Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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