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TMI Blog2012 (5) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessment year 2004-2005, the assessee claimed exemption under Section 10-A of the Act, 1961. The said exemption was denied by the Assessing Officer by the order dated 29/12/2006, on the ground that the assessee was earlier a proprietorship concerned, but during the previous year, it has been converted into a partnership firm. The matter was carried in appeal before the Commissioner of Income Tax (Appeals), who confirmed the order passed by the Assessing Officer vide order dated 31/12/2007. Thereafter both the assessee as well as the department preferred an appeal before the Tribunal. It has been stated at the bar that the appeal filed by the assessee was allowed by the Tribunal holding that the assessee is entitled to claim exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferred by any means, the deduction under sub-section (1) shall not be allowed to the assessee for the assessment year relevant to such previous year and the subsequent years. (9A) Notwithstanding anything contained in sub-section (9), where as a result of reorganisation of business, a firm or a sole proprietary concern is succeeded by a company and the ownership or beneficial interest in the undertaking of the firm or the sole proprietary concern is transferred to the company, the deduction under sub-section (1) in respect of such undertaking shall be allowed to the company, as the same would have been allowed to such firm or sole proprietary concern, as the same would have been allowed to such firm or sole proprietary concern, as the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o examine the effect of the circulars which are in force and are issued by the Central Board of Direct Taxes (for short, `the Board') in exercise of the power vested in it under Section 119 of the Act. Circulars can be issued by the Board to explain or tone down the rigours of law and to ensure fair enforcement of its provisions. These circulars have the force of law and are binding on the income tax authorities, though they cannot be enforced adversely against the assessee. Normally, these circulars cannot be ignored. A circular may not override or detract from the provisions of the Act but it can seek to mitigate the rigour of a particular provision for the benefit of the assessee in certain specified circumstances. So long as the circula ..... X X X X Extracts X X X X X X X X Extracts X X X X
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