TMI Blog2001 (9) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome shall be estimated at prescribed percentage basis i.e. @ 8 per cent of the gross receipts and there is no provision for deduction of work-in-progress. 2. On the facts and in the circumstances of the case the learned CIT(A) has also erred in directing the AO to assess the profits from truck-plying business under s. 44AE for 5 months as against 9 months taken by the AO thereby deleting the addition of Rs. 8,000 on this account without considering the facts that the truck was on I-Form only for 3 months. 3. At the time of hearing before us nobody appeared on behalf of the assessee but a copy of the decision of Tribunal, Jabalpur Bench reported in 28 ITC 223 in the case of ITO vs. S.C. Diwakar has been filed by the assessee in support ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or proper administration of the Act and for relieving the rigour of too literal a construction of the law for the benefit of the assessee in certain situations would not be binding on the Departmental authorities. This would be contrary to the ratio laid down by the Bench of five Judges in Navnit Lal C. Javeri vs. K.K. Sen (1965) 56 ITR 198 (SC). In fact State Bank of Travancore vs. CIT, has already been distinguished in the case of Keshavji Ravji Co. vs. CIT (1990) 82 CTR (SC) 123 : (1990) 183 ITR 1 (SC) by a Bench of three Judges in a similar fashion. It is held only as laying down that a circular cannot alter the provisions of the Act." After recording the aforesaid observations the Hon ble apex Court proceeded to hold that the CBDT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pril, 2000. 6. As regards the Instruction No. 1777, dt. 4th Nov., 1987, it appears that the following norms have been specified for the purpose of working out the monetary limit of revenue effect : (1) Cumulative revenue effect of the issue in the assessee s case for all the years upto the year for which returns have been filed should be taken into consideration. (2) Where the same issue is involved in different case of a group (e.g., industrial house, family, connected cases, etc.) the revenue effect of the group and not the individual case should be taken into account. (3) While applying the monetary limits the effect of carry forward and effect of consequential addition/deletions in other years should be kept in view. (4) In ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said Instructions nor the same is covered by any of the exceptions given in para 3(iii) enumerated herein above. 9. In the case of CIT vs. ITAT Anr. (1998) 150 CTR (Del) 319 : (1998) 232 ITR 207 (Del) the facts involved were that the Tribunal had rejected the application filed under s. 256(1) by the Department for referring the question of law without expressing any opinion as to whether questions sought to be answered were questions of law arising out of the order of the Tribunal, by relying on Circular No. 319/11 issued by CBDT, according to which the Department would not seek reference to the High Court if a question of law had arisen out of the order of the Tribunal, if the effect involved was less than Rs. 30,000. Aggrieved by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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