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2013 (9) TMI 742 - HC - Income TaxBinding of circular upon the Revenue officers – effective date of Circular No.7 of 2009 dated 22.10.2009 withdrawing earlier circulars - disallowance was made by A.O. under Section 40 (a) (i) for non-deduction of tax at source under Section 195. - Held that:- Where a circular issued earlier created a vested right in the tax-payer and such right is sought to be curtailed or withdrawn by a subsequent circular, then such subsequent circular will not have a retrospective effect - Circular No.7 of 2009 dated 22.10.2009 withdrawing earlier circulars became operative from 22.10.2009 - Circulars in the relevant year was binding upon the department and assessee can challenge the affect of the Circular but that the A.O. did not have any right to ignore the circulars and to disallow non-deduction of tax at source under Section 195 and under Section 40 (a) (i) of the Act – Decided against the Revenue.
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