796/CBDT. - Income Tax - 796/CBDT

INSTRUCTION NO. 796/CBDT Dated : November 22, 1974 Section(s) Referred: 119 Statute: Income - Tax Act, 1961 Reference is invited Board's Circular letter No.225/32/74-IT(A.II) dated 27th March, 1974 (printed below) on the above subject. 2. The Board have recently examined the question regarding the scope of section 119 of the IT Act, 1961 in consultation with the Ministry of Law, with particular reference to the power of the Board to give advance rulings/directions/instructions in individual cases. Section 119 prohibits the Board from issuing orders instructions or directions so as to require any income-tax authority to make a particular assessment or to dispose of a particular case in a particular manner. In view thereof, the Board has decided that it will not issue any advance rulings/directions/instructions in individual cases to any income-tax authority or to any querist. However, the Board would continue to over-see administratively, the functioning of the lower formations and give advice in individual cases if the facts of the case so justify. Such an advice may also be given in respect of references from the Commissioners only in respect of any difficult proposition of law or fact. Such an advice will not be in the nature of directions or instructions and it would be for the authority concerned to come to a decision on the merits of the case in the light of its individual judgment. As a corollary, it would be necessary to ensure that the IT Authorities refrain from quoting or referring to the advice or guidance given by the Board in any orders passed by them. Of course, there would be no objection to their adopting the reasoning contained in the advice or guidance given by the Board. 3. Necessary instructions may kindly be issued to the officers working in each charge on the lines indicated above.