9911796707
TMI Blog1999 (2) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... By order dated October 31, 1981, the appeal was allowed and the proceedings were cancelled. As against the said order, the Revenue filed an appeal under section 269H in the High Court of Kerala. During the pendency of the appeal, Chapter XX-C was introduced in the Income-tax Act (hereinafter referred to as "Act"), by the Finance Act of 1986 with effect from October 1, 1986. Under section 269RR, Chapter XX-A was made inapplicable in relation to transfer of an immovable property after September 30, 1986. The Central Board of Direct Taxes (hereinafter referred to as the "CBDT"), issued Circular No. 455, dated May 16, 1986. The relevant part of the circular reads as follows : "With a view to achieve early finalisation of proceedings under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter to be posted before the Division Bench for hearing. Against the said order of the Full Bench, the appellants have preferred this appeal by special leave. When leave was granted, the hearing of the pending appeal before the High Court was stayed. The only question to be considered is whether the circular issued by the Board is applicable to proceedings pending in the appellate stage or not. In other words, the question is, whether the circular will not apply to proceedings in which the competent authority had passed an order earlier even though the same is the subject-matter of appellate proceedings. Chapter XX-A of the Act was introduced by the Taxation Laws (Amendment) Bill, 1971, to implement the recommendations of the Wanchoo C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by each of the parties to the transfer. The statement should contain in the prescribed manner such particulars as may be prescribed and shall be furnished to the appropriate authority constituted by the Central Government under that Chapter within such time as may be prescribed. Section 269UD of the Act provides that the appropriate authority after the receipt of such statement may, for reasons, to be recorded, order for the purchase of such immovable property by the Central Government for an amount equal to the amount of apparent consideration. If such an order is not made within a period of two months from the end of the month in Which such statement is received by the appropriate authority, the power of the appropriate authority to make ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IR 1957 SC 540, wherein the court said at page 553 : "(i) That the legal pursuit of a remedy, suit, appeal and second appeal are really but steps in a series of proceedings all connected by an intrinsic unity and are to be regarded as one legal proceeding." Hence, we are unable to persuade ourselves to agree with the view expressed by the Full Bench of the High Court in the judgment under appeal that the circular would apply only to proceedings pending before the competent authority. Even before the matter was considered by the Full Bench of the Kerala High Court in the present case, the Delhi High Court had occasion to decide the question in CIT v. Rattan Chand Sood [1987] 166 ITR 497. After referring to the circular and extracting the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ond appeal was pending in the High Court under section 269H of the Act and thus the proceedings had not come to an end. As regard the orders, instructions and directions issued by the Board, the Bench referred to section 119 of the Act and observed that all authorities employed in the execution of the Act are duty bound to observe and follow such orders, instructions and directions of the Board. The Bench pointed out that the circular being a benevolent one would be binding on all authorities and would be applicable to the proceedings pending at the appeal stage as well, if the apparent consideration is below Rs. 5 lakhs. We are entirely in agreement with the opinion expressed by the High Court in that case. The same High Court reiterated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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