CBDT Circular or Instructions could not have been issued to Over-ride Provisions under Income Tax Act: Punjab and Haryana High Court

CBDT Circular or Instructions Cannot Override Provisions Under Income Tax Act: Punjab and Haryana High Court The Punjab and Haryana High Court ruled that the Central Board of Direct Taxes (CBDT) cannot issue circulars or instructions that override the provisions of the Income Tax Act. In a case involving conflicting interpretations, the court emphasized the supremacy of the statutory law, ruling that any circulars from the CBDT that contradict the law are invalid. This judgment reinforces the principle that administrative guidelines must align with statutory provisions, ensuring taxpayer protection from arbitrary administrative actions.