TMI Blog2001 (12) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... ] 102 CTR 9 (Ker) and CIT v. ITAT [1998] 232 ITR 207 (Delhi). He would next contend that in any event, as the amount of tax, in the event of the question being answered in favour of the assessee, would only be about Rs. 13,000 and the matter has been pending for more than twenty years, in terms of the circular issued by the Central Board of Direct Taxes (hereinafter referred to as "the Board"), the matter ought not have been referred to this court for its opinion at all. In support of the said contention learned counsel relied upon the decision of Mathew M. Thomas v. CIT [1999] 236 ITR 691 (SC) and CIT v. Imperial Surgical Co. Pvt. Ltd. [1991] 192 ITR 646 (SC). Mr. Sanjiv Khanna, appearing on behalf of the Revenue, on the other hand, would submit that there does not exist any circular of the Board in terms whereof the Tribunal can be said to be restrained from making any reference for the opinion of this court in exercise of its jurisdiction under section 256(1) of the Income-tax Act (hereinafter referred to as "the Act"). Learned counsel would contend that the circulars which do not have any statutory flavour are not enforceable. Strong reliance has been placed on a decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss to say that more than 80 per cent. of the income-tax references are made at the instance of the Revenue. We are now dealing with the references of 1974. They have been notified sufficiently in advance to enable proper arrangements to be made on behalf of the Revenue to ensure that service has been effected on the assessees and books have been supplied to the assessees. There have been a large number of cases in which we could have declined to proceed with the matter, because either the assessees are not served or books have not been supplied to the assessees. It must be said to the credit of the counsel for the assessees, who normally appear before the Tax Bench that they have tried to accommodate the Revenue by taking part in the hearing at a considerable short notice and sometimes the books have been made available on the same day or on the previous day. We have, however, now reached a stage where it is impossible to show any further indulgence to the Department. The only conclusion that we can reach is either that the Revenue is not interested in the conduct of these proceedings in references or that no adequate arrangements have been made by the Department concerned. The obv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o lay down a law that in no case this court in a situation of this nature would decline to answer the question referred to it for its opinion. It will depend upon the fact situation obtaining in a particular case. It may, in some cases, show greater indulgence to the Revenue. However, in this case not only is the amount involved small, the assessment year in question being of 1974-75, the time lag has also to be taken into account. The question now referred to this court is also not of much importance. The opinion of this court on the said question would largely depend upon the facts involved herein. So far as the second preliminary question raised by Mr. Aggarwal is concerned, we are of the opinion that the same has no force. In Imperial Surgical Co.'s case [1991] 192 ITR 646, the apex court referred to a circular of the Central Board dated March 4, 1972. We have perused the circular dated March 4, 1972, which related to benefits and amenities or perquisites allowed by companies vis-a-vis the restriction imposed by section 40(a)(v) as substituted by section 40A(5) of the Act. The said circular has nothing to do with the power of the Tribunal to refer a question. The apex court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statutory force and will be binding on every income-tax authorities. Therefore, the press release relied upon by Shri Ramamurti, not being a circular issued under section 119 of the Act, will not be of any assistance to the respondents in support of their contentions." Reference in this connection may also be made to J.R. Raghupaty v. State Of A.P., AIR 1988 SC 1681 ; Union of India v. S. L. Abbas [1993] 83 FJR 38 ; AIR 1993 SC 2444. The Allahabad High Court in Janta Metal Works v. ITO [1990] 186 ITR 458 (All) has held that the instructions for guidance of officers do not create any legal rights or curtail the statutory power and cannot be enforced through courts. Similar observations have been made by the Delhi High Court in the case of Geep Industrial Syndicate Ltd. v. CBDT [1987] 166 ITR 88. The Bombay High Court after discussing several judgments has also drawn a distinction between procedural clarifications issued by the Central Board of Direct Taxes and circulars interpreting provisions of the statute (see Shakti Raj Films Distributors v. CIT [1995] 213 ITR 20, 31). Circulars issued under section 119 of the Act stand on a different footing. The Supreme Court in UCO Bank' ..... X X X X Extracts X X X X X X X X Extracts X X X X
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