Cycles [1997]
228 ITR 463 (SC) wherein it was held that circulars bind the ITO but will not
bind the appellate authority or the Tribunal ... four corners
of Circulars No.9 and 10 issued by CBDT. The circulars were
evidently violated. The circulars are binding upon the department
under section
issue Circulars under.
Section 119 of the said Act. It is trite that the Circulars which are issued by the CBDT are legally binding ... afore-mentioned provisions had issued the Circular on 31st October 1989. The said Circular admittedly is binding on the Revenue. The Authority, therefore, could
afore-mentioned provisions had issued the circular on 31-10-1989. The said circular admittedly is, binding on the revenue. The authority, therefore, could ... concerned with the statutory powers of a statutory authority to issue binding circulars.
21. Another aspect of the matter also cannot be lost sight
wherein their Lordships have taken the view that the circulars can bind the Income-tax Officer but will not bind the appellate authority ... Ranka, learned counsel for the assessee, their Lordships held that a circular has binding effect," but the issue before the Supreme Court relates
Officer to have applied the circular. For the Commissioner the submission was that the circular had no binding force as far as the appellate Authorities ... applicability of such circulars to administrative matters. We would, therefore, hold that the circular, as such, has no binding force with reference to the assessment
have just referred are legally binding on the Revenue and this binding character attaches to the two circulars even if they be found ... case is not binding on this court for two reasons. Firstly, the question as to the binding nature of the circular
circular goes beyond the terms of the section, that the circular has no legal effect or should not be given effect to. Circulars cannot impose ... reasonable manner and not arbitrarily. In the light of the circulars which are binding, it cannot be contended by the Revenue that, as the Commissioner
statutory provisions. They are not binding upon the courts, It is true that those clarifications and circulars were communicated to the concerned dealers but even ... understanding and opinion. It is doubtful whether such clarifications and circulars bind the quasi-judicial functioning of the authorities under the Act. While acting
considered holding that directive to this effect coming through the circular was binding on the income-tax authorities on the principle that CBDT ... Circulars were binding on them. We will now take up the objection of the assessee about the applicability of the amended provisions of section
stated in the circular, the Revenue need not agitate the issue on appeal and that the circular is binding on the Revenue."
The said ... prescribed under the above said Circular dated 27.03.2000. The appeal is filed on 01.07.2005. Hence, the circular is binding on the revenue. The appeal
