IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION INCOME INCOME INCOME TAX REFERENCE NO. 5 OF 1988. TAX REFERENCE NO. 5 OF 1988. TAX REFERENCE NO. 5 OF 1988. The Commissioner of Income-Tax ... Applicant. V/s. Shailesh Wife Trust. ... Respondent. AND INCOME INCOME INCOME TAX REFERENCE NO. 260 OF 1988. TAX REFERENCE NO. 260 OF 1988. TAX REFERENCE NO. 260 OF 1988. The Commissioner of Income-Tax ... Applicant. V/s. M/s.Thermax Pvt.Ltd. ... Respondent. AND INCOME INCOME INCOME TAX REFERENCE NO. 262 OF 1988. TAX REFERENCE NO. 262 OF 1988. TAX REFERENCE NO. 262 OF 1988. The Commissioner of Income-Tax ... Applicant. V/s. M/s.Shotblasting & Metal Spraying Pvt.Ltd. ... Respondent. AND INCOME INCOME INCOME TAX REFERENCE NO. 333 OF 1988. TAX REFERENCE NO. 333 OF 1988. TAX REFERENCE NO. 333 OF 1988. The Commissioner of Income-Tax ... Applicant. V/s. Shri J.M.Shah. ... Respondent. AND INCOME INCOME INCOME TAX REFERENCE NO. 336 OF 1988. TAX REFERENCE NO. 336 OF 1988. TAX REFERENCE NO. 336 OF 1988. The Commissioner of Income-Tax ... Applicant. V/s. Capt.A.K.Dhawan. ... Respondent. AND INCOME INCOME INCOME TAX REFERENCE NO. 341 OF 1988. TAX REFERENCE NO. 341 OF 1988. TAX REFERENCE NO. 341 OF 1988. The Commissioner of Income-Tax ... Applicant. V/s. M/s.Mulay Brothers. ... Respondent. AND INCOME INCOME INCOME TAX REFERENCE NO. 343 OF 1988. TAX REFERENCE NO. 343 OF 1988. TAX REFERENCE NO. 343 OF 1988. The Commissioner of Income-Tax ... Applicant. V/s. M/s.Parle Products P.Ltd. ... Respondent. AND INCOME INCOME INCOME TAX REFERENCE NO. 344 OF 1988. TAX REFERENCE NO. 344 OF 1988. TAX REFERENCE NO. 344 OF 1988. The Commissioner of Income-Tax ... Applicant. V/s. M/s.Equipment Hoses Ltd. ... Respondent. - 2 - AND INCOME INCOME INCOME TAX REFERENCE NO. 354 OF 1988. TAX REFERENCE NO. 354 OF 1988. TAX REFERENCE NO. 354 OF 1988. The Commissioner of Income-Tax ... Applicant. V/s. Shri L.R.Mewani. ... Respondent. AND INCOME INCOME INCOME TAX REFERENCE NO. 358 OF 1988. TAX REFERENCE NO. 358 OF 1988. TAX REFERENCE NO. 358 OF 1988. The Commissioner of Income-Tax ... Applicant. V/s. The Trustees of Jitendra Narottam Edu. & Medical P.Ch.Trust. ... Respondent. AND INCOME INCOME INCOME TAX REFERENCE NO. 365 OF 1988. TAX REFERENCE NO. 365 OF 1988. TAX REFERENCE NO. 365 OF 1988. The Commissioner of Income-Tax ... Applicant. V/s. M/s.Hydronauts Pvt.Ltd. ... Respondent. AND INCOME INCOME INCOME TAX REFERENCE NO. 367 OF 1988. TAX REFERENCE NO. 367 OF 1988. TAX REFERENCE NO. 367 OF 1988. The Commissioner of Income-Tax ... Applicant. V/s. Hemant Family Trust No. ... Respondent. AND INCOME INCOME INCOME TAX REFERENCE NO. 371 OF 1988. TAX REFERENCE NO. 371 OF 1988. TAX REFERENCE NO. 371 OF 1988. The Commissioner of Income-Tax ... Applicant. V/s. M/s.Dolphin Fisheries Pvt.Ltd. ... Respondent. Ashok Kotangale for the applicant/revenue. None for the respondents/assessees. CORAM CORAM CORAM : V.C.DAGA AND A.S.AGUIAR, JJ. : V.C.DAGA AND A.S.AGUIAR, JJ. : V.C.DAGA AND A.S.AGUIAR, JJ. DATED DATED DATED : 30th June 2005. : 30th June 2005. : 30th June 2005. P.C. P.C. P.C. : : : ---- ---- ---- . Heard learned counsel for th applicant-revenue. Perused reference proceedings. 2. In all these matters, it is brought to our notice that the instructions issued by the Central - 3 - Board of Direct Taxes, New Delhi dated 27th March, 2000; wherein monetary limit for the department for filing reference to the High Court earlier fixed for Rs.50,000/- came to be revised and fresh instructions are issued by the Board to file reference only in cases where tax effect exceeds Rs.2,00,000/-. 4. This Court in the case of C.I.T. v. Camco C.I.T. v. Camco C.I.T. v. Camco Colour Colour Colour Co. Co. Co., (2002) 254 ITR 565 ruled that the above instructions are binding on the department. 5. The above instructions dated 27th March, 2000 reflects the policy decision taken by the Board not to raise questions of law where the tax effect is less than the amount prescribed in the instructions with a view to reduce litigations before High Courts and Supreme court. The circular is binding on the Revenue. There is no justification to proceed with the decades old references having negligible tax effect. 6. We, thus, do not think it necessary to answer these references. Accordingly, the above references stand returned unanswered with no order as to costs. (A.S.AGUIAR, (A.S.AGUIAR, (A.S.AGUIAR, J.) J.) J.) (V.C.DAGA, (V.C.DAGA, (V.C.DAGA, J.) J.) J.)