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TMI Blog2007 (9) TMI 272X X X X Extracts X X X X X X X X Extracts X X X X ..... e Central Board of Direct Taxes had issued instructions to the Department not to file appeals ?" 2. By the Circular dated October 24, 2005, the Central Board of Direct Taxes laid down certain monetary limits to emphasise upon the Department that if the tax effect of the case was below the monetary limits prescribed in clause 2 of the said Circular, the Department should not file any appeal. An exception was, however, carved out in the cases covered by paragraph 3 of the said Circular, which reads as under: "3. This Board has also decided that cases, where the question of law involved or raised in appeal is/are of recurring nature to be decided by the court, should be separately considered on the merits without being hindered by the moneta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 to the effect that the circulars are not binding on the appellate authorities, the court, the Tribunal or the assessee. However, we may point out that their Lordships were not considering any question involving interpretation of the circular issued by the Central Board of Direct Taxes. Learned counsel has further pointed out a decision of the Punjab and Haryana High Court in CIT v. Abhishek Industries Ltd. [2006] 286 ITR 1. Our attention was, in particular, invited to the discussion contained in paragraph 29 of the said report. However, we find that the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 97, to contend that the circular issued by the Central Board of Direct Taxes is binding on all the officers and the Commissioners and the 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 Board has taken a policy decision not to file appeal in a type of case in hand and the same is binding on the Revenue and in the result the appeal was dismissed following the Circular. The similar view as taken by the Division Bench of the High Court of Madhya Pradesh in the case of Asst. CIT v. Aradhana Oil Mills [2002] 30 ITC 446 and following the circular of the Central Board of Direct Taxes, the appeal was dismissed." 6. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the decision of the Punjab and Haryana High Court in Rani Palliwal v. CIT [2004] 268 ITR 220, of the Delhi High Court in CIT v. Blaze Advertising (Delhi) P. Ltd. [2002] 255 ITR 460 and of the 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 CIT v. Suresh Chand Goyal [2008] 298 ITR 277, where tax liability of the assessee is below the monetary limit prescribed, the Revenue cannot file an appeal in transgression of the Circular by which it is bound. However, we may add that in a case which falls within the excepted category, it would always be open to the Department to bring it to the notice of the forum approached and to insist that the question being co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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