TMI Blog2009 (4) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... t Narayanan JUDGEMENT K. Raviraja Pandian J.-The Revenue is on appeal against the order of the Income-tax Appellate Tribunal, Madras " A" Bench, dated August 5, 2005, in I. T. A. No. 414/Mds/2001 in respect of the assessment year 1997-98. The facts of this case are as follows : The assessee-company is engaged in the manufacture of PVC resins, caustic soda, chloremethenes, etc. For the assessment year 1997-98, the assessee claimed a sum of Rs. 3,43,116 as expenditure incurred towards rent/insurance/repairs in respect of guest/ transit house. The Assessing Officer disallowed the same on the ground that the provisions of section 37(2A) is very specific which disallow any expenditure incurred on the maintenance of a residential accommo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. South India Viscose Ltd. [2003] 259 ITR 107 (Mad) has been disapproved by the subsequent Supreme Court judgment. We have heard the arguments of the learned counsel on either side and perused the materials available on record. In the Central Board of Direct Taxes Circular in F. No. 279/126/98ITJ dated March 27, 2000, the monetary limit prescribed for filing an appeal by the Revenue is Rs. 2 lakhs, however, with certain exceptions. The exceptions are not applicable to the facts of the present case and admittedly, the tax effect in this case is lesser than the monetary limit prescribed in the said circular. Hence, it would not be proper on the part of the Revenue to file an appeal, which is against its own circular. It may be noted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITR 406 (Mad), to which one of us is a party (K. Raviraja Pandian J.), CIT v. Digvijay Singh [2007] 292 ITR 314 (MP) and CIT v. Camco Colour Co. [2002] 254 ITR 565 (Bom), this court held that the uniform line of judicial opinion is that if the tax effect is less than what is stated in the circular, the Revenue need not agitate the issue on appeal and that the circular is binding on the Revenue. The said judgment of this court in the case of Associated Electrical Agencies [2007] 295 ITR 496 has been relied by the Gujarat High Court in the case of CIT v. Concord Pharmaceuticals [2008] 220 CTR 117 ; [2009] 317 ITR 395 to reject the appeal of the Revenue where the tax effect is less than Rs. 2 lakhs. The apex court in the case of State of Ke ..... X X X X Extracts X X X X X X X X Extracts X X X X
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