Site navigation

Under Section 239 of the Income-tax Act, 2025, the Central Board of Direct Taxes is empowered to issue…

In K.P. Varghese v. Income Tax Officer (1981), the Supreme Court held that circulars issued by the Central Board of Direct Taxes (under the Board's statutory power now…

Choose your answer

Under Section 239 of the Income-tax Act, 2025, the Central Board of Direct Taxes is empowered to issue orders, instructions, and directions to income-tax authorities for the proper administration of the Act. According to the principle settled by the Supreme Court in K.P. Varghese v. Income Tax Officer (1981), how are departmental circulars issued by the Board soon after the enactment of a tax provision to explain its scope treated in statutory interpretation?

Select one answer
Answer and explanation

Correct answer D

In K.P. Varghese v. Income Tax Officer (1981), the Supreme Court held that circulars issued by the Central Board of Direct Taxes (under the Board's statutory power now contained in Section 239 of the Income-tax Act, 2025; formerly Section 119 of the Income-tax Act, 1961) contemporaneously with the enactment of a provision are 'in the nature of contemporanea expositio, furnishing legitimate aid in the construction' of the provision, in addition to being binding on the Revenue administration.

Practice for these exams

Related exam syllabi

Related questions in this topic