9911796707
TMI Blog2005 (11) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Act, 1961. The Commissioner upheld the claim and the contention urged by the assessee. Relying upon the decision of the Supreme Court as also the instructions issued by the Central Board of Direct Taxes, the Commissioner held that the receipts in question were not exigible to tax for the periods they were actually received. - In the light of the authoritative pronouncements of the Supreme Court regarding the binding nature of the instructions issued under section 119 of the Act, as also the fact that the appellate authority, has while allowing the appeal filed by the assessee, placed reliance upon the instructions, we see no substantial question of law arising for our consideration in this appeal - - - - - Dated:- 8-11-2005 - Judge(s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only from the assessment year 1998-99 onwards in view of the amendment made in section 55 of the Income-tax Act, 1961. The Commissioner upheld the claim and the contention urged by the assessee. Relying upon the decision of the Supreme Court as also the instructions issued by the Central Board of Direct Taxes, the Commissioner held that the receipts in question were not exigible to tax for the periods they were actually received. A further appeal taken to the Tribunal by the Revenue failed and was dismissed by the order impugned in the present appeal. The Tribunal also placed reliance upon the instructions issued by the Central Board of Direct Taxes and held that the amendment to section 55 notwithstanding, receipts of the kind we are con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ute. The court has, after noticing a series of decisions rendered by it earlier, summarised the governing principles in the following words: "(1) Although a circular is not binding on a court or an assessee, it is not open to the Revenue to raise a contention that is contrary to a binding circular by the Board. When a circular remains in operation, the Revenue is bound by it and cannot be allowed to plead that it is not valid nor that it is contrary to the terms of the statute. (2) Despite the decision of this court, the Department cannot be permitted to take a stand contrary to the instructions issued by the Board. (3) A show-cause notice and demand contrary to existing circulars of the Board are ab initio bad. (4) It is not open t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... file an appeal against the order passed in conformity with the circular. To this extent I have no difficulty in understanding the rationale of the decisions of this court, leaving apart for the time being the decisions in which a somewhat different note was struck." Having said so, the court referred to certain incongruities appearing in some of the decisions rendered by the apex court that required to be reconciled or explained by referring the matter to a Constitution Bench for an authoritative pronouncement on the subject. Of these areas, the primary area referred to by his Lordship called for some explanation in situations where a circular issued by the Board came in direct conflict with the law declared by the Supreme Court. The cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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