Instructions and Circulars can be issued Only for Supplementing Statutory Provisions: Punjab & Haryana HC sets aside Income Tax Order Contrary to Income Tax

The Punjab and Haryana High Court ruled that instructions and circulars issued by tax authorities can only supplement statutory provisions, not contradict them. The court set aside an income tax order that went beyond the provisions of the Income Tax Act, highlighting that administrative circulars must align with legislative intent. This ruling emphasizes the importance of adhering strictly to statutory guidelines in tax assessments and prevents tax authorities from overstepping their mandate.