Keshavji Ravji & Co. Etc. Etc vs Commissioner Of Income Tax on 5 February, 1990
In yet another decision of the Supreme Court in Keshavji Ravji and Co. v. CIT [1990] 183 ITR 1 (SC), it had been pointed out that the Board, by its circulars, cannot pre-empt a judicial interpretation of the provisions of the Act and the Tribunal, much less the High Court, is not bound by the circulars and that though such circulars might have departed from the tenor of the statutory provision and give benefit to assessees, that is not the same as saying that such circulars either have a binding effect on the interpretation of the provisions of the Act or that the Tribunal and the High Court are supposed to interpret the law in the light of the circulars. Ultimately, the Supreme Court pointed out that the circular broadly accorded with the view taken by the court on the interpretation of the true scope of the provision which fell for consideration and in that view, the Supreme Court felt it unnecessary to examine whether or not such circulars could be recognised as legitimate aids to statutory construction.