Diff b/w Circulars & Notification

CIRCULAR

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 .

NOTIFICATIONS

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

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"