In Brief
The Central Board of Direct Taxes (CBDT) issued a circular purporting to amend Rule 68B of the IInd Schedule to the Income Tax Act, 1961, using its powers under Section 119. The Supreme Court upheld the High Court's decision quashing the circular as ultra vires. The Court held that while CBDT has authority to issue circulars under Section 119, it cannot use this power to amend or override statutory provisions that have their own legislative force. Administrative circulars are interpretive aids only and cannot alter the statutory framework.
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