TMI Blog2012 (5) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... binding on the department – in favour of assessee. - INCOME TAX APPEAL No. - 487 of 2009 - - - Dated:- 21-3-2012 - Ashok Bhushan, Prakash Krishna, JJ. Petitioner Counsel :- Dhananjay Awasthi Respondent Counsel :- D.M. Sinha Present appeal has been filed under Section 260-A of the Income Tax Act, 1961 (hereinafter called the "Act, 1961") against the order dated 25/5/2009, passed by the Income Tax Appellate Tribunal Delhi Bench 'A': New Delhi (hereinafter called the "Tribunal") in ITA No.1085/Del/2008. 2. The matter relates to the assessment year 2004-2005. During the course of the assessment year 2004-2005, the assessee claimed exemption under Section 10-A of the Act, 1961. The said exemption was denied by the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal. 5. On the other hand, learned counsel for the assessee supports the order of the Tribunal. 6. Considered the respective submissions of the learned counsel for the parties. 7. It may not be out of place to mention that sub-sections (9) and (9A) of Section 10-A of the Act, 1961 are omitted by the Finance Act, 2003, w.e.f. 1-4-2004. For the sake of convenience Sub-sections (9) and (9A) of Section 10-A of the Act, 1961, as they were existing prior to omission, are reproduced below: "(9) Where during any previous year, the ownership or the beneficial interest in the undertaking is transferred by any means, the deduction under sub-section (1) shall not be allowed to the assessee for the assessment year relevant to such previo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to assessee under section 10-A of the Act. The C.I.T. (A) in his order has quoted the relevant extract from the Board's Circular No.7/2003 dated 05/9/2003 and has come to the conclusion that the Board agrees that benefit is attached to the undertaking and not to owner thereof. It is an acknowledged legal position that beneficial circular issued by CBDT is binding on the department. Reference can be made in this regard to a recent judgment of Supreme Court in Catholic Syrian Bank Ltd. Vs. Comissioner of Income Tax, Thrissur, JT 2012 (2) SC 493. Paragraph 21 is reproduced below: "21. Now, we shall proceed to examine the effect of the circulars which are in force and are issued by the Central Board of Direct Taxes (for short, `the Board') i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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