2003 (9) TMI 56 - BOMBAY HIGH COURT

Circular No. 9 of 2002 dated 11-09-2002 – validity - provisions of section 194A(3)(v) - CBDT, under the garb of section 119 of the Income-tax Act, 1961, cannot exercise wider powers than the powers bestowed on it. The Central Board of Direct Taxes has no power to introduce a substantial change or alteration in the provisions of the Income-tax Act, 1961, by importing ideas unknown to the Income-tax Act, 1961 - Central Board of Direct Taxes has no authority to make a crack in the exemption clause contained in section 194A (3) (v), by issuing the impugned circular – Impugned circular issued by the Central Board of Direct Taxes deprives the exemption granted by the Central enactment and, therefore, the said circular is bad in law and liable to be quashed and set aside