TMI Blog1986 (10) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... k a copy of the circular issued by the CBDT bearing No. 455 (F. No. 316-38-85-WT) dt. 16th May, 1986 stating that the Board has decided that w.e.f. 1st April, 1986 acquisition proceedings under s. 269C will not be initiated in respect of any immovable property for which the apparent consideration is Rs. 5 Lakhs or less and that where acquisition proceedings have been initiated by issue of notice under s. 269D, the proceedings will be dropped if the apparent consideration of the immovable property is below Rs. 5 lakhs. Referring to this circular he urged that in the case of transferee the apparent consideration being Rs. 92,000 was below Rs. 5 lakhs and, therefore, she was entitled to the benefit of the above circular of the Board and urged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igh Court in A.L.A. Firm vs. CIT (1976) 102 ITR 622 (Mad) has contended that judicial power to the ITO and for that matter of the Tribunal cannot be controlled by any circular that may be issued by the Central Board. He also referred to the judgment of the Hon'ble Supreme Court in J.K. Synthetics Ltd. vs. CBDT 1972 CTR (SC) 252 : (1972) 83 ITR 335 (SC) where it has been held that the Central Board is not competent to give directions regarding the exercise of any judicial powers by its subordinate authorities much less the Tribunal which is not an authority subordinate to the CBDT. He, therefore, urged that the said circular should be ignored and submitted that this circular was applicable from 1st April, 1986 and also where the proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udicial powers by its subordinate authorities as held by the Supreme Court in India in J.K. Synthetics Ltd. In this connection we may point that above judgment relate to the directions issued by the CBDT which are not in accordance with law and tend to interfere with the judicial discretion of the authorities and are against the interest of the assessees. The Madras High Court judgment relied upon by the ld. departmental representative that the circulars that are contemplated by s. 119 of the IT Act are in regard to administrative aspect and cannot extend to the judicial aspect of the administration. Here also we would like to add that these observations are with regard to such instructions which are against the interest of the assessee. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of the Act, the circulars were held to be binding on the ITO. This proposition laid down by the Hon'ble Supreme Court is in respect of beneficial circulars and not the circulars which are against the interest of the assessee. 6. From the above discussions it is amply clear that appellate proceedings are the continuation of the proceedings before the assessing authority. The appellate authority can do what the assessing authority can do. The circular issued by the CBDT is a beneficial circular and administrative in nature. It is applicable to all pending proceedings whether before the assessing authority or the appellate authority by the virtue of the above decisions. The Tribunal, therefore, has jurisdiction to take cognizanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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