Navnitlal C. Javeri v. K.K. Sen

56 ITR 198Supreme Court of India1965#384 most cited

What is Navnitlal C. Javeri v. K.K. Sen authority for?

The Supreme Court holds that circulars issued by the Central Board of Direct Taxes (CBDT) are binding on all officers and persons employed in the execution of the Income-tax Act. These circulars are binding even if they deviate from the provisions of the Act, particularly when issued to relieve hardships.

230

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 1999 to 2025.

Also referred to as

Navnitlal C. Javeri v. K.K. Sen · CBDT circulars binding · instructions binding on tax authorities · Section 119 Income Tax Act · circulars deviate from Act · relief hardship instructions · income-tax officers bound by circulars · assessment procedure · 56 ITR 198 · Central Board of Direct Taxes · binding nature of circulars · power to issue instructions

Also reported as

1 SCR 909

Sections most often in play

Section 143(3)Section 131(1A)Section 153ASection 132ASection 269SSSection 269TSection 271DSection 271E

Issues it is cited on

section 5(8)closely held companyprincipal director general of income-taxaccumulated profitssection 292bsection 292bbsection 260section 260asection 282section 292section 119section 29

Judgments citing Navnitlal C. Javeri v. K.K. Sen

Tata Education Trust, Mumbai vs. Pr CIT 17, Mumbai

ITA 7241/MUM/2019[2019-20]Status: DisposedITAT Mumbai24 Mar 2021AY 2019-20
Section 11Section 115TSection 12A

…Act, and such authorities and all other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions of the Board”. The CBDT circulars thus bind all the field authorities. In Navnitlal Jhaveri Vs Sen [(1965) 56 ITR 198 (SC)], Ellerman Lines Ltd Vs CIT [( 1971) 82 ITR 913 (SC)] and K P Verghese Vs ITO [( 1981) 131 ITR 597 (SC)], Hon’ble Supreme Court has accepted the validity and binding nature of the beneficent or benevolent circulars, and recognized the taxpayer’s right to enforce these circulars, in favour of the assessee, even in courts. In the case of Sedco…

Sarvajanik Seva Trust, Mumbai vs. Pr CIT 17, Mumbai

ITA 7240/MUM/2019[2019-20]Status: DisposedITAT Mumbai24 Mar 2021AY 2019-20

Bench: Us, Are As Follows: Assessment Year: 2019-20

Section 11Section 115TSection 12A

…Act, and such authorities and all other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions of the Board”. The CBDT circulars thus bind all the field authorities. In Navnitlal Jhaveri Vs Sen [(1965) 56 ITR 198 (SC)], Ellerman Lines Ltd Vs CIT [( 1971) 82 ITR 913 (SC)] and K P Verghese Vs ITO [( 1981) 131 ITR 597 (SC)], Hon’ble Supreme Court has accepted the validity and binding nature of the beneficent or benevolent circulars, and recognized the taxpayer’s right to enforce these circulars, in favour of the assessee, even in courts. In the case of Sedco…

Jamsetji Tata Trust, Mumbai vs. Pr CIT 17, Mumbai

ITA 7239/MUM/2019[2019-20]Status: DisposedITAT Mumbai24 Mar 2021AY 2019-20

Bench: Us, Are As Follows: Assessment Year: 2019-20

Section 11Section 115TSection 12A

…Act, and such authorities and all other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions of the Board”. The CBDT circulars thus bind all the field authorities. In Navnitlal Jhaveri Vs Sen [(1965) 56 ITR 198 (SC)], Ellerman Lines Ltd Vs CIT [( 1971) 82 ITR 913 (SC)] and K P Verghese Vs ITO [( 1981) 131 ITR 597 (SC)], Hon’ble Supreme Court has accepted the validity and binding nature of the beneficent or benevolent circulars, and recognized the taxpayer’s right to enforce these circulars, in favour of the assessee, even in courts. In the case of Sedco…

Navajbai Ratan Tata Trust, Mumbai vs. Pr CIT 17, Mumbai

ITA 7238/MUM/2019[2019-20]Status: DisposedITAT Mumbai24 Mar 2021AY 2019-20

Bench: Us, Are As Follows: Page 2 Of 47 1 A) The Impugned Order Dated 31.10.2019 Passed By The Learned Principal Commissioner Of Income-Tax-17 ('Pcit') Under Section 12Aa(3)/(4) Of The Income-Tax Act, 1961 ('Ita') Cancelling The Registration Of The Appellant Is Without Jurisdiction And, Hence, Void Ab Initio.

Section 11Section 115TSection 12ASection 12A(3)

…Act, and such authorities and all other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions of the Board”. The CBDT circulars thus bind all the field authorities. In Navnitlal Jhaveri Vs Sen [(1965) 56 ITR 198 (SC)], Ellerman Lines Ltd Vs CIT [( 1971) 82 ITR 913 (SC)] and K P Verghese Vs ITO [( 1981) 131 ITR 597 (SC)], Hon’ble Supreme Court has accepted the validity and binding nature of the beneficent or benevolent circulars, and recognized the taxpayer’s right to enforce these circulars, in favour of the assessee, even in courts. In the case of Sedco…

Tata Social Welfare Trust, Mumbai vs. Pr CIT 17, Mumbai

ITA 7237/MUM/2019[2019-20]Status: DisposedITAT Mumbai24 Mar 2021AY 2019-20

Bench: Us, Are As Follows: Assessment Year: 2019-20

Section 11Section 115TSection 12A

…Act, and such authorities and all other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions of the Board”. The CBDT circulars thus bind all the field authorities. In Navnitlal Jhaveri Vs Sen [(1965) 56 ITR 198 (SC)], Ellerman Lines Ltd Vs CIT [( 1971) 82 ITR 913 (SC)] and K P Verghese Vs ITO [( 1981) 131 ITR 597 (SC)], Hon’ble Supreme Court has accepted the validity and binding nature of the beneficent or benevolent circulars, and recognized the taxpayer’s right to enforce these circulars, in favour of the assessee, even in courts. In the case of Sedco…

The Commissioner of Income-Tax vs. M/S Varun Developers

In the result, the appeal fails and is hereby

ITA/198/2014HC Karnataka08 Feb 2021

Bench: ALOK ARADHE,R. NATARAJ

Section 260Section 260ASection 80I

…bstantial question of law has been answered in favour of the assessee in (i) UCO BANK VS. CIT 237 ITR 889 (SC) (ii) STATE OF KERALA AND OTHERS 5 VS. KURIAN ABRAHAM PRIVATE LIMITED AND ANOTHER, 303 ITR 284 (SC), (iii) NAVNITLAL ZAVERI VS. K.K.SEN (1965) 56 ITR 198 (SC) and (iv) AZADI BACHAO ANDOLAN, 263 ITR 706 (SC). Similarly, it is pointed out that third substantial question of law is covered by NATIONAL THERMAL POWER CO. LTD. VS. COMMISSIONER OF INCOME TAX, 229 ITR 383 (SC). It is also urged that the fourth substantial question of law does not arise for consideration in the facts of the ca…

M/S Embassy One Developers Private Limited, Bangalore vs. Deputy Commissioner of Income Tax Central Circle-2(2), Bangalore

In the result, both the appeals of the assessee are partly allowed

ITA 2240/BANG/2018[2010-11]Status: DisposedITAT Bangalore26 Nov 2020AY 2010-11

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri. Ajay Rotti, CAFor Respondent: Shri. Kannan Narayanan, JCIT (DR)(ITAT), Bengaluru

…of Hon’ble Supreme Court had an occasion to survey the judicial precedents on the question of binding nature of the CBDT circulars. After elaborately dealing with Hon’ble Supreme Court’s judgments in the cases of Navnit Lal C. Jhaveri vs. K.K. Sen, AAC (1965) 56 ITR 198 (SC) and K.P. Varghese vs. ITO & Anr. (1981) 24 CTR (SC) 358 : (1981) 131 ITR 597 (SC), their Lordships concluded that the CBDT circulars inter alia can tone down the rigour of the law and such benevolent circulars are ITA Nos.2239 and 2240/Bang/2018 Page 10 of 16 binding on the field authorities. It cannot therefore be open to a Revenue authority…

M/S Embassy One Developers Private Limited, Bangalore vs. Deputy Commissioner of Income Tax Central Circle-2(2), Bangalore

In the result, both the appeals of the assessee are partly allowed

ITA 2239/BANG/2018[2009-10]Status: DisposedITAT Bangalore26 Nov 2020AY 2009-10

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri. Ajay Rotti, CAFor Respondent: Shri. Kannan Narayanan, JCIT (DR)(ITAT), Bengaluru

…of Hon’ble Supreme Court had an occasion to survey the judicial precedents on the question of binding nature of the CBDT circulars. After elaborately dealing with Hon’ble Supreme Court’s judgments in the cases of Navnit Lal C. Jhaveri vs. K.K. Sen, AAC (1965) 56 ITR 198 (SC) and K.P. Varghese vs. ITO & Anr. (1981) 24 CTR (SC) 358 : (1981) 131 ITR 597 (SC), their Lordships concluded that the CBDT circulars inter alia can tone down the rigour of the law and such benevolent circulars are ITA Nos.2239 and 2240/Bang/2018 Page 10 of 16 binding on the field authorities. It cannot therefore be open to a Revenue authority…

Exotica Housing & Infrstructure Pvt Ltd, New Delhi vs. ITO Ward - 8(4), New Delhi

ITA 5188/DEL/2019[2013-14]Status: DisposedITAT Delhi24 Jun 2020AY 2013-14

Bench: Shri Bhavnesh Saini & Shri Anil Chaturvedi

For Appellant: Shri Kapil Goel, AdvocateFor Respondent: Shri Jagdish Singh, Sr. D.R
Section 143(3)Section 2(22)(e)

…3).” 14.3.2. The Hon’ble Supreme Court, while considering the provision of Section 2(6A)(e) of the Indian Income-tax Act, 1922, which is parimateria to the provisions of Section 2(22)(e) of the IT Act, in the case of Navneet Lal C. Javeri vs. K.K. Sen, AAC in 56 ITR 198 at pages 207-208 of the Report had judicially noticed the purpose and the object of the insertion of such provision under the IT Act in the following words: “In dealing with Mr. Pathak’s argument in the present case, let us recall the relevant facts. The companies to which the impugned section applies are companies in which at least 75 per cent of…

Kaybee P.Ltd, Mumbai vs. ITO 10(1)(3) (Erstwhile Juridictional ITO 8(2)(2), Mumbai

In the result, the appeal is allowed in the terms indicated above

ITA 4950/MUM/2018[2006-07]Status: DisposedITAT Mumbai28 Feb 2020AY 2006-07
Section 143(3)Section 271Section 271ASection 271BSection 92ASection 92A(1)(b)Section 92A(2)Section 92DSection 92E

…be found to be not in accordance with the correct interpretation (of the related provision) and they depart or deviate from such construction. It is now well settled, as a result of decisions of this court, one in Navnit Lal C Jhaveri Vs K K Sen, AAC [(1965) 56 ITR 198 (SC)] and the other in Ellerman Lines Ltd Vs CIT [(1971) 82 ITR 913 (SC)] that circulars issued by the CBDT under s 119 of the Act are binding on all officers and persons employed in execution of the Act even if they deviate from the provisions in law”. When a decision is arrived at contrary, in letter and in spirit, to the position set out in the…

Kaybee P.Ltd, Mumbai vs. ITO 10(1)(3) (Erstwhile Juridictional ITO 8(2)(2), Mumbai

In the result, the appeal is allowed in the terms indicated above

ITA 4949/MUM/2018[2006-07]Status: DisposedITAT Mumbai28 Feb 2020AY 2006-07
Section 143(3)Section 271Section 271ASection 271BSection 92ASection 92A(1)(b)Section 92A(2)Section 92DSection 92E

…be found to be not in accordance with the correct interpretation (of the related provision) and they depart or deviate from such construction. It is now well settled, as a result of decisions of this court, one in Navnit Lal C Jhaveri Vs K K Sen, AAC [(1965) 56 ITR 198 (SC)] and the other in Ellerman Lines Ltd Vs CIT [(1971) 82 ITR 913 (SC)] that circulars issued by the CBDT under s 119 of the Act are binding on all officers and persons employed in execution of the Act even if they deviate from the provisions in law”. When a decision is arrived at contrary, in letter and in spirit, to the position set out in the…

Kaybee P.Ltd, Mumbai vs. ITO 10(1)(3) (Erstwhile Juridictional ITO 8(2)(2), Mumbai

In the result, the appeal is allowed in the terms indicated above

ITA 2165/MUM/2015[2007-08]Status: DisposedITAT Mumbai28 Feb 2020AY 2007-08
Section 143(3)Section 92ASection 92A(1)Section 92A(1)(b)Section 92A(2)

…be found to be not in accordance with the correct interpretation (of the related provision) and they depart or deviate from such construction. It is now well settled, as a result of decisions of this court, one in Navnit Lal C Jhaveri Vs K K Sen, AAC [(1965) 56 ITR 198 (SC)] and the other in Ellerman Lines Ltd Vs CIT [(1971) 82 ITR 913 (SC)] that circulars issued by the CBDT under s 119 of the Act are binding on all officers and persons employed in execution of the Act even if they deviate from the provisions in law”. When a decision is arrived at contrary, in letter and in spirit, to the position set out in the…

Kaybee P.Ltd, Mumbai vs. ITO 10(1)(3) (Erstwhile Juridictional ITO 8(2)(2), Mumbai

In the result, the appeal is allowed in the terms indicated above

ITA 2164/MUM/2015[2006-07]Status: DisposedITAT Mumbai28 Feb 2020AY 2006-07
Section 143(3)Section 92ASection 92A(1)Section 92A(1)(b)Section 92A(2)

…be found to be not in accordance with the correct interpretation (of the related provision) and they depart or deviate from such construction. It is now well settled, as a result of decisions of this court, one in Navnit Lal C Jhaveri Vs K K Sen, AAC [(1965) 56 ITR 198 (SC)] and the other in Ellerman Lines Ltd Vs CIT [(1971) 82 ITR 913 (SC)] that circulars issued by the CBDT under s 119 of the Act are binding on all officers and persons employed in execution of the Act even if they deviate from the provisions in law”. When a decision is arrived at contrary, in letter and in spirit, to the position set out in the…

Uniworth Limited, Kolkata vs. DCIT, Circle - 11, Kolkata

In the result, appeals filed by the assessee in ITA No

ITA 2554/KOL/2017[2006-07]Status: DisposedITAT Kolkata20 Jan 2020AY 2006-07

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am

For Appellant: Shri N.M. Bhansali, AdvocateFor Respondent: Shri Supriyo Pal, JCIT, Sr. DR
Section 143(1)Section 143(3)Section 147Section 148

…ree years, then in the fourth year and onwards the claim for interest has to be treated as a doubtful claim which need not be included in the income of the assessee until it is actually recovered. 7. In the case of Navnitlal C. Javeri v. K.K. Sen, AAC [1965] 56 ITR 198 (SC), the legal effect of such circulars is, inter alia, considered by a Bench of five Judges of this Court. Section 2(6A)(e) and section 12(1B) were introduced in the Income-tax Act by the Finance Act, 1955 which came into force on 1-4-1955. The Government, however, realised that the operation of section 12(1B) would lead to extreme hardship beca…

Uniworth Limited, Kolkata vs. ACIT, Circle - 11, Kolkata

In the result, appeals filed by the assessee in ITA No

ITA 2553/KOL/2017[2004-05]Status: DisposedITAT Kolkata20 Jan 2020AY 2004-05

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am

For Appellant: Shri N.M. Bhansali, AdvocateFor Respondent: Shri Supriyo Pal, JCIT, Sr. DR
Section 143(1)Section 143(3)Section 147Section 148

…ree years, then in the fourth year and onwards the claim for interest has to be treated as a doubtful claim which need not be included in the income of the assessee until it is actually recovered. 7. In the case of Navnitlal C. Javeri v. K.K. Sen, AAC [1965] 56 ITR 198 (SC), the legal effect of such circulars is, inter alia, considered by a Bench of five Judges of this Court. Section 2(6A)(e) and section 12(1B) were introduced in the Income-tax Act by the Finance Act, 1955 which came into force on 1-4-1955. The Government, however, realised that the operation of section 12(1B) would lead to extreme hardship beca…

Uniworth Limited, Kolkata vs. DCIT, Circle - 11, Kolkata

In the result, appeals filed by the assessee in ITA No

ITA 2552/KOL/2017[2003-04]Status: DisposedITAT Kolkata20 Jan 2020AY 2003-04

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am

For Appellant: Shri N.M. Bhansali, AdvocateFor Respondent: Shri Supriyo Pal, JCIT, Sr. DR
Section 143(1)Section 143(3)Section 147Section 148

…ree years, then in the fourth year and onwards the claim for interest has to be treated as a doubtful claim which need not be included in the income of the assessee until it is actually recovered. 7. In the case of Navnitlal C. Javeri v. K.K. Sen, AAC [1965] 56 ITR 198 (SC), the legal effect of such circulars is, inter alia, considered by a Bench of five Judges of this Court. Section 2(6A)(e) and section 12(1B) were introduced in the Income-tax Act by the Finance Act, 1955 which came into force on 1-4-1955. The Government, however, realised that the operation of section 12(1B) would lead to extreme hardship beca…

Lic Housing Finance Ltd, Mumbai vs. DCIT Cir 2(2), Mumbai

ITA 5434/MUM/2011[2004-05]Status: DisposedITAT Mumbai04 Oct 2019AY 2004-05

Bench: Hon’Ble Shri Mahavir Singh, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ I.T.A. No.5434/Mum/2011 (िनधा"रण वष" / Assessment Year:2004-05) Lic Housing Finance Limited Dcit-Circle -2(2) 2Nd Floor, Bombay Life Bldg. बनाम/ Aaykar Bhavan, M.K. Marg 45/47 Veer Nariman Road Mumbai- 400 020. Vs. Fort, Mumbai-400 023. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaci-5375-F (अपीलाथ"/Appellant) (""थ" / Respondent) : & आयकरअपील सं./ I.T.A. No.5435/Mum/2011 (िनधा"रण वष" / Assessment Year:2005-06) Lic Housing Finance Limited Dcit-Circle -2(2) 2Nd Floor, Bombay Life Bldg. बनाम/ Aaykar Bhavan, M.K. Marg 45/47 Veer Nariman Road Mumbai- 400 020. Vs. Fort, Mumbai-400 023. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaci-5375-F (अपीलाथ"/Appellant) (""थ" / Respondent) : Assessee By : Shri H.P. Mahajani- Ld. Ar Revenue By : Shri Anadi Varma - Ld. Cit-Dr सुनवाई की तारीख/ : 30/07/2019 Date Of Hearing घोषणा की तारीख / : 04/10/2019 Date Of Pronouncement

For Appellant: Shri H.P. Mahajani- Ld. ARFor Respondent: Shri Anadi Varma - Ld. CIT-DR
Section 36(1)(viii)

…ese were in the nature of concessions which could always be prospectively withdrawn. The court also observed that the circulars cannot detract from the Act. The decision of the Constitution Bench of this court in Navnit Lal (C.) Javeri v. K.K. Sen, AAC [1965] 56 ITR 198 , or the subsequent decision in K.P. Varghese v. ITO [1981] 131 ITR 597 (SC), also do not appear to have been pointed out to the court. Since the later circular of October 9, 1984, was not pointed out to the court, the court naturally proceeded on the assumption that the benefit granted under the earlier circular was no longer available to the ass…

Asian Business Conection Pvt. Ltd., Bhopal vs. DCIT - 1(1), Bhopal

ITA 936/IND/2018[2015-16]Status: DisposedITAT Indore25 Sept 2019AY 2015-16

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Boradassessment Year 2015-16 M/S. Asian Business Dcit-1(1), Connections Private Ltd, Vs. Bhopal Fm-18, Man Sarovar Complex, 7No. Stop, Shivaji Nagar, Bhopal (Appellant) (Respondent ) Pan No.Aaica1206D

Section 139(1)Section 143(2)Section 143(3)Section 2Section 2(22)Section 2(22)(e)Section 35D

…Leasing Ltd. (2018) 90 taxmann.com 385 (Delhi) 13. Dr. Shiv Kant Mishra V Deputy Commissioner of Income Tax, Central Circle-II, Kanpur (2009) 118 ITD 347 (Lucknow-Trib) 14. Navnit Lal C Javeri V K.K. Sen, Appellate Assistant Commissioner of Income Tax (1965) 56 ITR 198 (SC) 15. Ravinbdra R Fotedar V. Assistant Commissioner of Income Tax 10(2), Mumbai (2017) 85 Taxmann.com 314 (Mum-Trib) 36 Asian Business Connection Private Limited 16. Saamag Developers (P) Ltd V Assistant Commissioner of Income Tax (2018) 90 taxmann.com 20 (Delhi-Trib) 17. Commissioner of Income Tax Kottayam V Malayala Manorama Co. Ltd (2018) 8…

Deputy Commissioner of Income Tax, Range-6, Lucknow vs. Shri Furquan Ali, Lucknow

In the result, the appeal filed by the Revenue stands dismissed

ITA 650/LKW/2018[2012-13]Status: DisposedITAT Lucknow20 Sept 2019AY 2012-13

Bench: Shri A.D Jain & Shri T.S. Kapoora.Y. 2014-15

Section 268ASection 268A(1)

…on, the Circular issued by the CBDT is binding on the Departmental Authorities in view of the provisions of Section 268A(1) of the Income Tax Act, 1961. The said view has been taken by the Hon’ble Supreme Court in the case of Navnit Lal Jhaveri vs. K. K. Sen, 56 ITR 198 (SC). We, accordingly, dismiss the appeal filed by the Revenue. 5. In the result, the appeal filed by the Revenue stands dismissed. (Order pronounced in the open court on 31/01/2019) (T.S. Kapoor) Vice President Aks – Dtd. 31 /01/2019 3 Copy of order forwarded to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental…

A./Dy.C.I.T., Central Circle, Agra vs. M/S Sant Lal Industries Ltd., Mainpuri

In the result, the appeal filed by the Revenue stands dismissed

ITA 142/AGR/2013[2007-08]Status: DisposedITAT Agra08 Aug 2019AY 2007-08

Bench: Shri Laliet Kumar & Dr. Mitha Lal Meena

Section 268ASection 268A(1)

…case, as in our opinion, the Circular issued by the CBDT is binding on the departmental officers in view of the provisions of Section 268A(1) of the Income Tax Act. The said view has been taken by the Hon’ble Supreme Court in the case of ‘Navneet Lal Zaveri’, 56 ITR 198 (SC). We, accordingly, dismiss the appeal filed by the Revenue. 5. In the result, the appeal filed by the Revenue stands dismissed. Order pronounced in the open court on 08/08/2019. (LALIET KUMAR) (DR. MITHA LAL MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER *AKV*…