9911796707
TMI Blog2004 (8) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment year 1995-96 – Held that the circulars can be adverse to the Income-tax Department, but still, are binding on the authorities of the Income-tax Department – Revenue’s submission that these instructions were not binding on the Tribunal or court or were not available for execution to any judicial authority, not acceptable – Revenue’s appeal dismissed - - - - - Dated:- 27-8-2004 - Judge(s) : BILAL NAZKI., P. S. NARAYANA. JUDGMENT The judgment of the court was delivered by BILAL NAZKI J. - This is an appeal by the Commissioner of Income-tax, against an order passed by the Tribunal on August 20, 2002. The questions framed by the appellant are: "1. Whether, on the facts and in the circumstances of the case, the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jected. Aggrieved by the order of the appellate authority, the appeal was preferred before the Income-tax Appellate Tribunal. The Tribunal allowed the appeal. Hence, the present appeal by the Department. A very short question is involved. Admittedly, the Department issued a circular by way of press release on March 12, 1996. These guidelines were regarding "scrutiny assessment guidelines for assessment year 1996-97". By these guidelines, it was notified that the Income-tax Department had decided not to select returns for the assessment year 1996-97 for detailed scrutiny, if the total income declared is at least 30 per cent, more than the total income declared for the assessment year 1995-96. The case of the respondent before the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is no dispute on that also. Now, the only question, which needs an answer is, as to what is the status of these circulars. The circular had admittedly been issued by the Central Board of Direct Taxes under section 119(1) of the Act. What is the scope of such circulars should not detain us because of the authoritative pronouncement of the hon'ble Supreme Court reported in UCO Bank v. CIT [1999] 237 ITR 889. The Supreme Court noted: "What is the status of these circulars? Section 119(1) of the Income-tax Act, 1961, provides that, 'the Central Board of Direct Taxes may, from time to time, issue such orders, instructions and directions to other income-tax authorities as it may deem fit for the proper administration of this Act, and suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contemplated therein cannot be adverse to the assessee. Thus, the authority which wields the power for its own advantage under the Act is given the right to forgo the advantage when required to wield it in a manner it considers just by relaxing the rigour of the law or in other permissible manners as laid down in section 119. The power is given for the purpose of just, proper and efficient management of the work of assessment and in public interest. It is a beneficial power given to the Board for proper administration of fiscal law so that undue hardship may not be caused to the assessee and the fiscal laws may be correctly applied. Hard cases which can be properly categorised as belonging to a class, can thus be given the benefit of relax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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