There is no question of 'harmonious construction' of a CBDT Circular issued by the CBDT. At best, it is an external aid of construction of a provision in the Income-Tax Act. It is well settled that if a Circular issued by the Department favours an Assessee then it should be so done even where such interpretation goes contrary to the legislative intent. The contention of Revenue that the CBDT Circular 5 of 2010 has to be harmoniously construed with Section 201(3) of the Act to glean an intention to permit the Department to initiate cases four years earlier than 31st March, 2011.This contention cannot be accepted. The plain words in Circular "pending cases", in respect of which orders have to be passed in terms of the proviso to Section 201(3) before 31st March 2011" being favourable to the assessee must be given effect even if contrary to the legislative intent of the proviso to section 201(3)
Refer:[2016] 67 taxmann.com 124 (Delhi)
Refer:[2016] 67 taxmann.com 124 (Delhi)