Administrative circulars must be examined before rejecting interest relief claims under a one-time settlement scheme.

A claim for interest relief under a one-time settlement scheme cannot be rejected at the threshold without verifying the supporting material and testing its coverage under the relevant circular issued by the Registrar of Cooperative Societies, Haryana. Here, the Assessing Officer disallowed the claim without examining the circular or the assessee's supporting details, and the appellate authority affirmed that approach without addressing applicability of the circular. The matter was therefore restored for fresh consideration on facts and in law, with an opportunity of hearing. The disallowance was not finally sustained on the existing record.

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Issues: Whether the disallowance of interest relief claimed under the one time settlement scheme was sustainable without examining the assessee's claim in the light of the relevant circular issued by the Registrar of Cooperative Societies, Haryana.

Analysis: The disallowance was made by the Assessing Officer at the threshold on the basis that the amount was large compared with the interest receipts, without verifying the supporting details or examining whether the assessee's claim was covered by the circular relied upon. The appellate authority also upheld the disallowance without addressing the applicability of the circular. As neither authority examined the claim in the context of the governing circular, the matter required reconsideration on facts and in law.

Conclusion: The issue was restored to the Assessing Officer for fresh examination after considering the circular and the assessee's claim thereunder, with due opportunity of hearing.

Final Conclusion: The assessee obtained a remand for fresh adjudication, so the disallowance was not finally sustained on the existing record.

Ratio Decidendi: A claim based on a governing administrative circular cannot be disallowed finally without verifying its applicability and examining the supporting material.

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