Income-tax Act,1961
Act No : 43
Section :
Instructions to subordinate authorities
1[119. Instructions to subordinate authorities (1)The Board may, from time to time, issue such orders, instructions and directions to other income-tax authorities as it may deem fit for the proper administration of this Act, and such authorities and all other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions of the Board: Provided that no such orders, instructions or directions shall be issued- (a) so as to require any income-tax authority to make a particular assessment or to dispose of a particular case in a particular manner; or (b) so as to interfere with the discretion of the 2[Deputy Commissioner (Appeals)] 3[or the Commissioner (Appeals)] in the exercise of his appellate functions. (2) Without prejudice to the generality of the foregoing power,- 4(a) the Board may, if it considers it necessary or expedient so to do, for the purpose of proper and efficient management of the work of assessment and collection of revenue, issue, from time to time (whether by way of relaxation of any of the provisions of sections 5[ 139], 143, 144, 147, 148, 154, 155, 6[sub-section (1A) of section 201, sections 210, 211, 7 [234A, 234B], 234C], 271 and 273 or otherwise), general or special orders in respect of any class of incomes or class of cases, setting forth directions or instructions (not being prejudicial to assessees) as to the guidelines, principles or procedures to be followed by other income-tax authorities in the work relating to assessment or collection of revenue or the initiation of proceedings for the imposition of penalties and any such order may, if the Board is of opinion that it is necessary in the public interest so to do, be published and circulated in the prescribed manner for general information; (b) the Board may, if it considers it desirable or expedient so to do for avoiding genuine hardship in any case or class of cases, by general or special order, authorise 8[any income-tax authority, not being a Deputy Commissioner (Appeals) or Commissioner (Appeals)] to admit an application or claim for any exemption, ---------------------------------------------------------------------- 1 Substituted by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1- 4-1971. 2 Substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 3 Inserted by the Finance (No. 2) Act, 1977, w.e.f 10-7-1978. 5 Inserted by the Finance Act, 1990, w.e.f. 1-4-1990. 6 Substituted for "210, 234A, 234B" by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991. Earlier, the figures "234A, 234B" were inserted by the Finance Act, 1990, w.e.f. 1-4-1990. 7 Inserted by the Finance Act, 1990, w.e.f. 1-4-1990. 8 Substituted for "the Commissioner or the Income-tax Officer" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f 1-4-1988. ------------------------------------------------------------------------ 1.487 deduction, refund or any other relief under this Act after the expiry of the period specified by or under this Act for making such application or claim and deal with the same on merits in accordance with law. 1[(c) the Board may, if it considers it desirable or expedient so to do for avoiding genuine hardship in any case or class of cases, by general or special order for reasons to be specified therein, relax any requirement contained in any of the provisions of Chapter IV or Chapter VIA, where the assessee has failed to comply with any requirement specified in such provision for claiming deduction thereunder, subject to the following conditions, namely:- (i) the default in complying with such requirement was due to circumstances beyond the control of the assessee; and (ii) the assessee has complied with such requirement before the completion of assessment in relation to the previous year in which such deduction is claimed: Provided that the Central Government shall cause every order issued under this clause to be laid before each House of Parliament.] 2[(3) * * *] 1 Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991. 2 Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4- 1988. Prior to the omission, sub-section (3) read as under: "(3) Every Income-tax Officer employed in the execution of this Act shall observe and follow such instructions as may be issued to him for his guidance by the Director of Inspection or by the Commissioner or by the Inspecting Assistant Commissioner within whose jurisdiction he performs his functions." ----------------------------------------------------------------------- 1.488 the merits of the case in the light of his individual judgement. It would be necessary to ensure that the income-tax authorities refrain from quoting or referring to the advice or guidance given by the Board in any order passed by them. [Instruction No. 796, dated 12th November, 1974] 5. A circular of the CBDT cannot override or detract from the Act, inasmuch as what section 119 has empowered is to issue orders, instructions or directions for the "proper administration" of the Act or for such other purposes specified in sub-section (2) of the section. Such an order, instruction or direction cannot override the provisions of the Act; that would be destructive of all the known principles of law as that would really amount to giving power to a delegated authority to even emend the provision of law enacted by Parliament. [Kerala Financial Corpn. v CIT (1994) 210 ITR 129 (SC)] B.-Jurisdiction
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