TMI Blog2007 (12) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... not have filed the appeal before the Tribunal. The Central Board of Direct Taxes, in the above circular had asked all officers of the Income-tax Department under their control not to file appeals before the Appellate Tribunal in cases where the tax effect involved in appeal did not exceed Rs. 2 lakhs. These instructions in question are binding on all departmental authorities and they could not be by passed and treated as of no consequence on the pretext that these were private only, and the authorities are bound to follow, comply with and see that the policies laid down by the Board achieve their objectives. These instructions had been issued to avoid unnecessary litigation in small cases particularly, it was very difficult for a small asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mits. It was held that in case of matters not covered by the exceptions like: ( i ) where revenue audit objection in the case has been accepted by the Department, ( ii ) where the Board s order, notification, instruction or circular is the subject matter of an adverse order, ( iii ) where prosecution proceedings are contemplated against the assessee, and ( iv ) where the constitutional validity of the provisions of the Act are under challenge, the appeals filed by the department should be dismissed. It was observed by ITAT Special Bench in the case of ITO v. Bir Engg. Works [2005] 94 ITD 164 (Asr.) that with a view to reduce the pendency of appeals in the Tribunal, High Court and Supreme Court and also to redress difficulties of small a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to assessment, collection of revenue or the initiation of proceedings for the imposition of penalties. Here also the Board may, if it is of the opinion that it is necessary in the public interest to do so, publish and circulate such instructions. Therefore, it is not in all cases that instructions/ circulars issued by the Board under section 119(2) are published by the Board. Thus, the only difference between sub-section (1) and sub-section (2) of section 119 is that while sub-section (2) is more specific with reference to particular class of income or class of cases. The contention of the revenue could not be accepted that instructions issued under sub- section (1) were more in the nature of administrative instructions and, therefore, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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