|CORAM:||A.K. Sikri J., Ashok Bhushan J|
|SECTION(S):||119, Rule 68 of Second Schedule|
|CATCH WORDS:||CBDT Circular, jurisdictional issue, notification, ultra vires|
|DATE:||July 13, 2017 (Date of pronouncement)|
|DATE:||September 8, 2017 (Date of publication)|
|FILE:||Click here to view full post with file download link|
|S. 119: The CBDT has no jurisdiction to issue a Circular to amend the legislative provisions set out in the Act. Such action is ultra vires and liable to be quashed|
The Central Board of Direct Taxes (CBDT) issued a Circular under Section 119 of the Income Tax Act,1961. In fact, it amended the provisions contained in Rule 68B of the IInd Schedule to the Income Tax Act, 1961, which otherwise have statutory force. Such legislative provisions cannot be amended by CBDT in exercise of its power under Section 119 of the Act. The High Court has, therefore, rightly held the circular ultra virus and quashed the same.