In an appeal before the Tribunal for the assessment Year 2006-07  the Tribunal   by an order dt. 29 2-1016 held that the statutory contribution made to superannuation fund was outside the ambit of fringe benefits tax. The assessee filed revised return for the AY. 2007-08 and claimed exemption in the revised return which was not considered. The Assessee has filed revision application before the Commissioner u/s 264 of the Act, which was rejected. The assessee filed writ against the rejection of order under section 264 of the Act. Opposing the petition  the  Department    contended that  that Circular No. 9 of 2015, dated June 9, 2015 (2015) 374 ITR 25 (St)  issued by the Central Board of Direct Taxes which stated that a claim for refund would not be entertained beyond six years from the end of the assessment year for which the claim was made was binding on the Principal Commissioner, and that the claim could have been considered only by the Board and not by the Principal Commissioner were sustainable. However, the Principal Commissioner had not taken note of the spirit of the court’s order dated June 12, 2019, wherein it had stated that if the assessee was not liable to pay any fringe benefits tax, then, the Department ought to have refunded it. The Income-tax Department being an arm of the State was bound by the constitutional mandate enshrined in article 14 of the Constitution of India and the principles of fairness and reasonableness. Though any taxing statute would have to be construed strictly and there was no scope for applying equitable principles, the assessee’s case was not one of tax liability. According to the legal position prevailing, the assessee was not liable to have made any payment of fringe benefits tax in respect of contribution towards superannuation fund. Circular No. 9 of 2015, dated June 9, 2015 issued by the Board was no doubt binding on the authorities including the Principal Commissioner, but a court was not bound by such a circular. Section 119 did not have any limitation. The assessee was permitted to file an appropriate application before the Central Board of Direct Taxes. Since as on date there was no tax liability on the part of the assessee the application would be entertained by the Board without reference to limitation and orders passed. If any refund was ordered in the pending appeal by the Department the question of paying any interest by the Department would not arise. (AY.2007-08)