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2004 (12) TMI 31 - HC - Income TaxCircular No. F. No. 200/79/2000-ITA-1 – validity - Petitioner seeks for a writ of declaration declaring Circular No. F. No. 200/79/2000-ITA-1 dated January 23, 2001, as invalid. - first respondent had issued a notice for reopening the completed assessment u/s 148. One of the grounds for reopening is the allowability of the amounts paid by the petitioner to its employees under the Voluntary Retirement Scheme (VRS) by relying on the impugned circular - petitioner contends that the circular thus issued is contrary to the provisions of the Act and also that it is beyond the powers of the Board to issue such a circular against the interests of the assessee – Held that the very reason behind the statutory bar u/s 119(2) to issue any instruction contrary to the interests of the assessee is that a subordinate official (Assessing Officers) is bound to comply with the directions/opinion of a superior authority - In this case there is a positive direction to treat the ex gratia amount as capital expenditure, which direction is certainly adverse to the assessee. Therefore to the extent that the circular is against the interests of the assessees, the same is liable to be held ultra vires.
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