In Brief
The Commissioner of Income Tax challenged the High Court's decision quashing a Circular issued by the Central Board of Direct Taxes (CBDT). The Circular had purported to amend Rule 68B of the IInd Schedule to the Income Tax Act, 1961, through exercise of power under Section 119. The Supreme Court affirmed that the CBDT lacks authority to amend statutory provisions through circulars. Since Rule 68B has legislative force, it cannot be modified by administrative action. The Court dismissed the appeal, holding the High Court's decision quashing the Circular as correct.
The lawyer headnote and full judgment text are available to registered users.