TMI Blog2010 (10) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... s and directions of the Board. Administrative Instruction No. 9/2004 issued by the Central Board of Direct Taxes is binding on the administrative officer. - - - - - Dated:- 21-10-2010 - DHIRENDRA MISHRA, CHANDRAKAR R. N., JJ JUDGMENT Dhirendra Mishra J.- The Revenue's appeal under section 260A of the Income-tax Act, 1961 against the order of the Income-tax Appellate Tribunal, Bilaspur Bench, Bilaspur (in short "the Tribunal") has been admitted on the following substantial question of law :"Whether the Income-tax Appellate Tribunal was justified in holding that the administrative Instruction No. 9/2004 issued by the Central Board of Direct Taxes is binding on the administrative officer in view of the statutory provision con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n law. 4. Shri Rajeev Shrivastava, learned counsel for the Revenue, would argue that the directions contained in Instruction No. 9/2004 datedSeptember 20, 2004shall not defeat the provisions of law, which provides limitation of one year for scrutiny under section 143(2) of the Act. Any guideline or instruction cannot supersede the provisions of the Act. 5. Placing reliance on the decision of the High Court of Kerala in the matter of CIT v. Malayala Manorama and Co. Ltd. [1983] 143 ITR 29 it is argued that the Board's circulars though binding on all revenue officers, cannot go against the provisions of the Act. 6. Further relying on the decision of the hon'ble Supreme Court in the matter of Kerala Financial Corporation v. CIT [19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued by the Board would be binding on all officers and persons employed under section 119 but no instruction or circular can go against the provisions of the Act. While the Board can relax the rig ours of the law or grant relief which is not to be found in the terms of the statute, such circulars making for a just and fair administration of the law, no instruction which will be ultra vires the provisions of the statute could be issued. 11. In the matter of Kerala Financial Corporation [1994] 210 ITR 129, the Supreme Court while dealing with the circulars issued by the Board under section 119, observed that section 119 empowers the Board to issue orders, instructions or directions for the proper administration of the Act or for such other p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istration of fiscal law so that undue hardship may not be caused to the assessee and the fiscal laws may be correctly applied. Hard cases which can be properly categorized as belonging to a class, can thus be given the benefit of relaxation of law by issuing circulars binding on the taxing authorities." 13. In the matter of Smt. Nayana P. Dedhia [2004] 270 ITR 572, the Andhra Pradesh Court held that these guidelines issued by the Board in exercise of powers in terms of section 119 of the Act relaxing the rigours of law are binding on all the officers responsible for implementation of the Act and, therefore, bound to follow and observe any such orders, instructions and directions of the Board. 14. Direction by issuing instructions to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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