Diff b/w Circulars & Notification
CA Deepak Joshi (TaxTalk) (178 Points)
30 January 2010
Can u tell me the basic diff b/w circulars and notifications...??? example wud help a lot...
CA Deepak Joshi (TaxTalk) (178 Points)
30 January 2010
SSA JI
(Ca Final )
(1970 Points)
Replied 30 January 2010
whenever any doubt is raised on any topic in the industry BOARD ( CBDT or CBEC etc ) issue CIRCULAR to clarify the provision
BINDING NATURE
They are binding on the departmental officers and not on the assessee. Supreme Court, High Court and Tribunal are not bound by the circulars
AS respected Supreme Court held in case of INDIA OIL CORPORATION that
--> Circular are not advisory for the officers but are binding on them .
--> Department cannot take a plea that a circular is contrary to the statue or is invalid .
--> If circular are beneficial in nature assessee can take the benefit of the same .
ALL notifications are issued under DELEGATED LEGISLATIVE power . Notification has FULL STATUTORY Force as if it is contained in the ACT itself . AND THEREFORE THEY ARE BINDING ON ASSESSEE, Officers And ALL COURTS.
AFTER GETTING THIS I HOPE NOW YOU HAVE AN EXPERT LEVEL KNOWLEDGE ABOUT IT
BEST OF LUCK
DAVINDER SINGH
CA Deepak Joshi
(TaxTalk)
(178 Points)
Replied 31 January 2010
Amir
(Learner)
(4016 Points)
Replied 31 January 2010
Dear Deepak,
Circulars are binding on the department since the issuing authority is the "Board" which is responsible for administring the Act.
Had the circulars been given a mandatory binding on the assessee then Board would be in a positon of "Law maker" rather then "Law Admistrator"
Circulars are not binding on CIT(A) also,since they r supposed to discharge "JUDICIAL FUNCTIONS"
CAclubindia
