Royal Bank of Scotland N.V. Vs CIT (Calcutta High Court)
So far as the letter dated 21.11.1994 issued by Joint Secretary and addressed to Chief Commissioner of Income Tax II Kolkata is concerned, ITAT find that it was written in response to a D.O. letter of the Chief Commissioner. The letter of the Joint Secretary merely informs that “the matter has been looked into and the board is of the opinion that the tax rate applicable in the case of ABN AMRO BANK would be the same as for an Indian Company at the relevant tax rate applicable for the concerned assessment years”. The said letter is a D.O. letter. It is not a circular issued in exercise of power conferred under Section 119 of the Income Tax Act, 1961. That apart the said letter is in conflict with plain and unambiguous provisions of the Act 1961 and the Finance Act which we have discussed above. That apart the opinion expressed in the aforesaid letter was also changed even before the Explanation was inserted. ITAT also agrees with the reasons recorded by the ITAT in paragraph 59 of the impugned order. Accordingly ITAT hold that the said letter cannot override the plain and unambiguous provision of the Act, 1961 and the Finance Act.
