Category: CBDT: latest Circulars, Instructions, Notifications, E-Assessment

CBDT Wiki

The Central Board of Direct Taxes (CBDT) is a statutory authority functioning under the Central Board of Revenue Act, 1963.

It controls the income-tax department which operates under the Income-tax Act, 1961.

The officials of the CBDT also function in an ex-officio capacity as part of the Finance Ministry and deal with matters relating to levy and collection of direct taxes.

Powers

The CBDT has statutory powers under section 119 of the Income-tax Act, 1961.

It is empowered to issue orders, instructions and directions to other income-tax authorities as it may deem fit for the proper administration of this Act.

All authorities and all other persons employed in the execution of this Act are obliged to observe and follow such orders, instructions and directions of the CBDT.

Restrictions

There are restrictions on the powers of the CBDT.

It is not empowered to issue any orders, instructions or directions:

(a) so as to require any income-tax authority to make a particular assessment or to dispose of a particular case in a particular manner; or

(b) so as to interfere with the discretion of the Commissioner (Appeals) in the exercise of his appellate functions.

Relaxation of statutory provisions

The CBDT is empowered to issue directions and orders from time to time by way of relaxation of any of the provisions of various specified sections of the Income-tax Act.

It can also issue directions as to the guidelines, principles or procedures to be followed by other income-tax authorities in the work relating to assessment or collection of revenue or the initiation of proceedings for the imposition of penalties.

However, the directions or instructions issued cannot be prejudicial to assessees.

CBDT Circulars

The CBDT has the power to issue circulars under section 119 of the Income-tax Act.

The circulars issued are binding on all income-tax authorities.

The binding effect of the Circulars was recognized by the Supreme Court in UCO BANK vs. COMMISSIONER OF INCOME TAX (1999) 154 CTR 0088 : (1999) 237 ITR 0889 : (1999) 104 TAXMAN 0547.

It was held in the Supreme Court judgements that the Circulars are not meant for contradicting or nullifying any provisions of the statute.

The Bench of five judges of the Supreme Court in Navnitlal C. Javeri vs. K.K. Sen has also recognized the binding effect of CBDT Circulars.

The CBDT Circulars are meant for ensuring proper administration of the statute, they are designed to mitigate the rigours of the application of a particular provision of the statute in certain situations by applying a beneficial interpretation to the provision in question so as to benefit the assessee.

The Bombay High Court has also held that a circular which is properly issued under s. 119 of the IT Act for proper administration of the Act and for relieving the rigour of too literal a construction of the law for the benefit of the assessee in certain situations would be binding on the Departmental authorities.

Notifications

The CBDT also has the power to issue Notifications from time to time.

These Notifications are issued so as to confer exemption or qualification for eligibility to institutions referred to in section 10 of the Act.

The Notifications also amend the provisions of the Act or the Rules

Chairman

The CBDT Chairman is the senior-most IRS civil servant in the Government of India.

The CBDT Chairperson is the ex officio Special Secretary to the Government of India and also cadre controlling authority of the Indian Revenue Service.

He is under the direct charge of the revenue secretary of India.

He is placed above the officers of the rank of Lieutenant-General, Vice-Admiral or Air Marshal, CBI Director and Deputy Comptroller and Auditor General in the Order of Precedence.

There is no fixed tenure for the office of the Chairman. Generally, the average tenure of the chairman is around 2 years and can be extended by the Government.

Sushil Chandra is the chairperson of the CBDT.

Website

The official website of the CBDT is https://www.incometaxindia.gov.in/

Headquarters

The office or headquarters of the CBDT is at the following address:

CENTRAL BOARD OF DIRECT TAXES,
9TH FLOOR, LOK NAYAK BHAWAN,
KHAN MARKET, NEW DELHI – 110003.

Telephone: 011-24622788, 011-24640970