TMI Blog1987 (7) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order passed by the Income-tax Officer in the matter of allowing extra shift allowance which required the intervention of the Commissioner under section 263 ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in cancelling the order under section 263 passed by the Commissioner of Income-tax withdrawing the extra shift allowance allowed by the Income-tax Officer in the assessment order ? " The respondent is an assessee to income-tax. The matter relates to the assessment year 1977-78, the corresponding previous year ending on March 31, 1977. The controversy is regarding the allowance of extra shift allowance in respect of the entire machinery in the factory of the respondent. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITR 851 and further held that the circular is binding on all authorities subordinate to the Board. It was further held that the Income-tax Officer was justified in allowing extra shift depreciation on the entire Plant and machinery in the concern of the assessee in the light of the circular and that no error was committed in the matter. The Revenue filed an application before the Appellate Tribunal under section 256(1) of the Income-tax Act to refer two questions of law for the decision of this court. By order dated September 19, 1984, the said application was rejected. Thereafter, the Revenue has filed the present petition, under section 256(2) of the Act, praying that this court may be pleased to direct the Appellate Tribunal to refer the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to contend, even in cases where the circular goes beyond the terms of the section, that the circular has no legal effect or should not be given effect to. The circulars would go to the assistance of the assessees. It is settled law that the circulars cannot impose any burden on the taxpayer. But, by the issue of a circular, the rigour of the law can be relaxed by giving administrative relief. Apart from the fact that such circulars are binding on the officers of the Department, even if the circulars are relied on for the first time in the High Court during the course of hearing, the assessee will be entitled to the benefit afforded by the circular. The court is bound to take note of the circular. These propositions are well settled by a s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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