Supreme Court rules CBDT circular not binding on tax assessments
The case involves Orient Crafts Limited challenging the Commissioner of Income Tax's decision to reopen assessments for tax years 2000-01 and 2001-02, based on the interpretation of Section 80HHC of the Income Tax Act, 1961 and the binding nature of a CBDT circular.
Petitioner: Orient Crafts Limited; Respondent: Commissioner of Income Tax, New Delhi; Bench: S.V.N. Bhatti, J.
- The Supreme Court upheld that CBDT Circular is not binding on the Court.
- The High Court's judgment reversing the ITAT's decision was set aside.
- The Court held that the C.I.T. incorrectly exercised jurisdiction under Section 263 of the Income Tax Act, 1961.
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Document details
| Official title | Income Tax | CBDT Circular Not Binding On Court : Supreme Court |
| Source body | Supreme Court of India — orders & judgments |
| Reference number | — |
| Status | closed (order) |
| Year | 2026 |
| Closing date | — |
| Documents | 1 |