TMI Blog1987 (2) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... quence of orders passed by the Income-tax Officer giving effect to the orders of the Income-tax Appellate Tribunal in the appeals preferred against the assessments pertaining to the above assessment years. Actually, the Commissioner of Income-tax (Appeals) had decided the assessee's appeals in favour of the assessee to some extent and the Tribunal dismissed the appeals filed by the Department from the orders of the Commissioner of Income-tax (Appeals). We are not here concerned with the correctness or otherwise of these orders of the Tribunal. The objection of the assessee is that while giving effect to the appellate orders, the Income-tax Officer has not properly calculated the amount of interest which the assessee could be called upon to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircular bearing No. 334 dated April 3, 1982, by which the Central Board of Direct Taxes has issued instructions as to how interest chargeable under section 220(2) should be computed in cases where the assessment order undergoes changes at various stages of appeal. It is submitted that since the circular has been issued by the Central Board of Direct Taxes located in New Delhi and the petitioner is challenging the correctness of that circular, this court has jurisdiction to entertain these writ petitions. He also submits that the demands raised by the Income-tax Officer as a consequence of the appellate orders are being contested only in respect of interest and this contest cannot be raised in appeal as has been held in various decisions, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of the statute or rules made thereunder, one should presume that the Income-tax Officer has applied the circular in computing the interest while raising the demands which are raised by it. We are unable to accept this argument. In the first place, as we have pointed out earlier, the Board's circular has not been referred to by the Income-tax Officer either directly or even casually as the basis for computation of interest and we cannot presume that he has applied the circular. On the other hand, the papers placed before us show that the officer had independently applied his mind to the issue. The assessee petitioner has not placed before us a copy of its application under section 154. But, from the order passed by the Income-tax Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered applicable Proprio vigore. At worst, all that can be said is that the circular has also been taken into account and considered in the light of the judicial decisions referred to by the Income-tax Officer. It is clear that while a circular of the Board will be binding upon an Income-tax Officer in matters relating to the general interpretation of any provisions of the statute, the circular cannot override judicial decisions rendered on the statute. In fields which are covered by judicial decisions, the circular will not be conclusive even so far as the Income-tax Officer is concerned. In the circumstances, we are of opinion that the circular issued by the Central Board of Direct Taxes dated April 3, 1982, cannot constitute a grou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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