Circular No. 5-P(LXX-6)/1968 — Liberal interpretation of beneficial provisions
Date: 1968-01-01 Status: ACTIVE Category: Foundational / Doctrinal Binding on Department: Yes (Section 119 / Section 400 IT Act 2025)
Summary
Directs that taxing provisions should be strictly interpreted, but beneficial provisions and exemptions should be liberally construed in favour of the taxpayer. Together with Circular 14/1955, forms the bedrock of the ‘circular supremacy’ doctrine.
Key Directions
- Taxing provisions must be interpreted strictly — if language is ambiguous, benefit goes to the assessee.
- Exemption and relief provisions must be construed liberally in favour of the taxpayer.
- These principles are binding on all officers of the department.
Applicability Under IT Act 2025
Saving Clause: Section 536 of IT Act 2025 saves circulars issued under the 1961 Act “so far as not inconsistent” with the new Act.
| Old Section (1961 Act) | New Section (2025 Act) | Consistent? |
|---|---|---|
| 119 | 400 | Yes |
Cross-References
Act Sections
Related Circulars
- None identified
Key Case Law (Circular Supremacy)
- To be populated — cases where this circular was cited/applied
Full Text
Full text to be added — see raw/circulars/ for PDF when available
Source
- Official: incometaxindia.gov.in/circulars