TMI Blog2007 (8) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed a sum of Rs.3,27,895/- towards bonus, however, in the balance sheet as on 31.3.1991, the assessee has shown a sum of Rs.84,01,475.98ps. under the head "Accounts payable". The assessing officer called for the details regarding payment of bonus. The assassin's representative stated that the bonus was paid to the staff on 31.10.2001 after drawing the cash from the Bank. On verification of the accounts, the assessing Officer found that though there was cash withdrawal from the Bank on 31.10.2001, there was no entry in the books of accounts relating to disbursement of bonus and even the vouchers did not contain the date of receipt except in a few cases wherein the date of receipt of bonus was mentioned as 2.11.1991. In the absence of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Tribunal was right in directing the assessing officer to allow the payment of bonus to staff as deduction even though the payment has not been made on or before the due date for filing the return of income?" 3. Though the appeal was filed by the revenue, learned counsel appearing for the assessee/respondent contended that considering the tax effect involved, which is very negligible, this is not a fit case to entertain the appeal for consideration by relying on instruction No.1979 issued by the Central Board of the Central Board of Direct Taxes in Circular F.No.279/126/98-ITJ, dated 27.3.2000. 4. However, learned counsel for the revenue contended that when the appeal was entertained by this Court and was pending before this Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee, but only cautioned the assessee that if the assessee put on notice the revenue, the revenue would have gathered material and satisfied whether it is a fit case for filing appeal with reference to the exception clause contained therein. Hence, the judgment cannot be regarded as one which decided the scope and binding nature of the circular and decided in favour of the revenue. 7. In the case of COMMISSIONER OF INCOME-TAX VS. RAJASTHAN PATRIKA LIMITED reported in (2002) 258 ITR 300, the Rajasthan High Court categorised the circular as one of administrative instruction and held that the administrative instruction cannot prevail over the statutory provision. 8. In the case of RANI PALIWAL VS. COMMISSIONER OF INCOME-TAX ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons stated in the circular are applicable to the facts of the present case. The circular was stated to be issued by invoking the statutory power under Section 119 of the Income-tax Act. The appeal is filed under Section 260-A of the Income-tax Act. It is well settled principle of law that each and every provision of a statute has to be given the same importance. One provision cannot be alleviated to a higher pedestal than the other provision, of course, unless or otherwise specifically stated either in the scheme, the Act or in the provision itself that a particular provision is subjected to or qualified by any other provision or the provision can be given effect to notwithstanding anything contained in any other provisions by assigning ov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 1964, the total gift tax assessed was Rs.5661/-, upon a fresh determination of the value of the shares adopting the somewhat intricate processes inherent in the "profit-method" of valuation, the difference in the quantum of the tax might, perhaps, not be substantial. The magnitude of the mechanism for refixation of the value of the gifts and the difference in the quantum of the tax it might result in, do not bear a reasonable or sensible proportion. Having regard to the pecuniary involvement in that case, which was obviously small, the Supreme Court observed that they should not expose the parties to a fresh round of litigation. 13. In the case of COMMISSIONER OF INCOME-TAX VS. DIGVIJAY SINGH reported in (2007) 292 ITR 314 , t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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