2006 (6) TMI 75

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in holding that the provisions contained in section 12A(b) are only directory in nature and not mandatory?" Before these questions are answered, it may be pointed out that the assessee in this case is the Andhra Pradesh State Road Transport Corporation. The Andhra Pradesh High Court in its judgment reported in Andhra Pradesh State Road Transport Corporation v. CIT [1975] 100 ITR 392, declared that the Corporation was entitled to exemption under section 11 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), holding it to be a charitable institution in view of its objects. This decision has been affirmed by the Supreme Court in CIT....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e Chartered Accountants Act, 1949 (38 of 1949), and includes, in relation to any State, any person who by virtue of the provisions of sub-section (2) of section 226 of the Companies Act, 1956 (1 of 1956), is entitled to be appointed to act as an auditor of companies registered in that State." It was the case of the Revenue that there was no certificate of the chartered accountant furnished along with the return of income for the relevant assessment years and there was no report of the accountant in the prescribed form duly signed. In other words, it is submitted that since the audit report was not furnished in terms of Form No. 10B as laid down by section 12A(b) read with rule 17B of the Rules, therefore, there was no question of grant o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he Income-tax Department submits that these instructions are not binding on the Department and had not been issued in accordance with section 119 of the Act. He submits that in any case, it is the function of the courts to interpret statutes and the Board cannot interpret the statute, and if the instructions of the Board are contrary to the statute, these instructions cannot be enforced. Section 119 of the Act lays down that the Board may from time to time issue such orders, instructions and directions as it may deem fit for the proper administration of the Act and the authorities and all other persons employed in the execution of the Act shall observe and follow the orders, instructions and directions of the Board. Coming to the first a....