If a Board Circular favours an assessee, it should be so done
QUITE often, the tax officers in the field have a different view from the one expressively communicated through Board Circulars and the highest court in the land has on several occasions clarified that Board Circulars are binding on the Department.
This was reiterated by the Delhi High Court on 9th March 2016.
The Revenue Counsel argued that the Board Circular has to be harmoniously constructed with the Section.
The High Court emphatically noted that there is no question of 'harmonious construction' of a CBDT Circular. It is well settled that if a Circular issued by the Department favours an Assessee then it should be so done even where such interpretation goes contrary to the legislative intent .
Consistency and discipline are of far greater importance than the winning or losing of court proceedings.
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Until Monday with more DDT
Have a nice weekend.
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