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TMI Blog2010 (10) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... e statutory provision contained in section 143(2) of the Income-tax Act, 1961, which provided for limitation of 12 months for issuance of notice under section 143(2) of the Act ?" 2. Briefly stated, the facts of the case as projected in the memo of appeal, are that the assessee filed his return of income on October 29, 2004 declaring total income at Rs. nil. The return was processed/assessed under section 143(1) of the Income-tax Act, 1961 (in short "the Act, 1961") and the same was selected for scrutiny and assessment was completed onDecember 15, 2006, on a total income of Rs. 41,26,844. A total sum of Rs.27,12,120 was disallowed on the ground of excessive premium paid to key-man insurance policy out of an amount of Rs. 90,40,402. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Kerala Financial Corporation v. CIT [1994] 210 ITR 129 it is submitted that the circular of the Board, relied upon by the Tribunal, was applicable to the returns for the current financial year 2004-05. The referred circular was applicable to selection of the cases for scrutiny of the returns for the financial year 2004-05 and the same was not applicable to scrutiny of the returns filed by the assessee on October 29, 2004. 7. On the other hand, Ms. Smiti Sharma, learned counsel for the assessee, submits that it is settled law that the circulars issued by the Board under section 119 of the Act are binding on all officers and employees employed in execution of the Act, even if they deviate from the provisions of the Act. The powe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the proper administration of the Act or for such other purposes specified in sub-section (2) of the section. Such an order, instruction or direction cannot override the provisions of the Act, that would be destructive of all the known principles of law as the same would really amount to giving power to a delegated authority to even amend the provision of law enacted by Parliament. Such a contention can-not seriously be even raised. 12. In the case of UCO Bank [1999] 237 ITR 889, the Supreme Court dealing with the legal status of such circulars, observed thus (page 896) :"Such instructions may be by way of relaxation of any of the provisions of the sections specified there or otherwise. The Board thus has power, inter alia, to to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irections of the Board. 14. Direction by issuing instructions to the officers for the process of selection of cases for scrutiny of returns for a particular financial year and allowing time of three months for completion of the same can, by no stretch of imagination, be considered that it overrides or detracts from the provisions of the Act. It only directs that the above exercise should be completed within three months of the date of filing of return by the assessee, which amounts to relaxation to the assessee that the return filed by him can be scrutinized by the Assessing Officer within three months of filing of the return. 15. So far as contention of the Revenue that Instruction No. 9/2004 dated September 20, 2004, is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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