June 2019

Section 119 CBDT Power to issue directions Any directives by CBDT which give additional incentive for an order that Commissioner (Appeals) may pass having regard to its implication, necessarily transgresses on Commissioner's exercise of discretionary quasi judicial powers. Interference or controlling of discretion of a statutory authority in exercise of powers from an outside agency or source, may even be superior authority, is wholly impermissible

K. B. BHUJLE
Advocate

19

Chamber of Tax Consultants vs. CBDT; [2019] 104 taxmann.com 397 (Bom)

Date of order: 11th April, 2019

 

Section 119 CBDT Power to issue directions Any directives by CBDT which give additional incentive for an order that Commissioner (Appeals) may pass having regard to its implication, necessarily transgresses on Commissioner's exercise of discretionary quasi judicial powers. Interference or controlling of discretion of a statutory authority in exercise of powers from an outside agency or source, may even be superior authority, is wholly impermissible

 

The Chamber of Tax Consultants challenged a portion of the Central Action by the CBDT which provided incentives to Commissioner (Appeals) for passing orders in certain manner. The Bombay High Court allowed the writ petition and held as under:

 

i)   In terms of the provisions contained in sub-section (1) of section 119, the Board may, from time to time, issue such orders, instructions and directions to other income tax authorities as it may deem fit for proper administration of the Act and such authorities shall observe and follow the orders, instructions and directions of the Board. While granting such wide powers to the CBDT under sub-section (1) of section 119, the proviso thereto provides that no such orders, instructions or directions shall be issued so as to require any income tax authority to make a particular assessment or to dispose of a particular case in a particular manner.

ii)   When the CBDT guidelines provide greater weightage for disposal of an appeal by the Appellate Commissioner in a particular manner, this proviso of sub-section (1) of section 119, would surely be breached.

 

iii)   Thus, the portion of the Central Action Plan prepared by CBDT which gives higher weightage for disposal of appeals by quality orders, i.e., where order passed by Commissioner (Appeals) is in favour of Revenue, was to be set aside.

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