N MAHALINGAM Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THE assessment years are 1979-80, 1980-81 and 1981-82. THE assessee's grievance, which resulted in the reference is regarding the revision of the assessment order, which had been passed on January 25, 1983. THE revisional order had been passed on March 25, 1985. THE assessee contends that the revisional order is one, which should not have been made having regard to the circular, which the Central Board of Direct Taxes had issued on the 1st day of November, 1984. That circular reads thus (see [1985] 151 ITR (St.) 46) :

(2.) THE learned senior standing counsel for the Department has informed us that the Department has consistently followed the circular. No reason has been stated as to why that circular was disregarded in the instant case. THE assessee herein is as much entitled to the benefit of the circular as any other assessee similarly placed. That circular being one which is beneficial to the assessee, is also binding on the Department and the stand taken by the Department inconsistent with the circular cannot be sustained.