GENERAL21 Sept 2026
SC says CBDT circular not binding in courts, rejects Section 80HHC claim
The Supreme Court has held that CBDT (Central Board of Direct Taxes) circulars do not bind courts. It rejected garment exporters' Section 80HHC claims for assessment years 2000-01 and 2001-02, saying export quota premium is not export income because no foreign exchange was received. So premium income may not qualify for that deduction. If you claim similar benefits, check your own facts.
Key Statutory Highlights
- The Supreme Court held that a CBDT circular is not binding on courts.
- Export quota premium cannot be treated as export income because the transaction did not involve receipt of foreign exchange.
- The court dismissed garment exporters' appeals for assessment years 2000-01 and 2001-02, which involved Section 80HHC claims.
Actionable Advice for Taxpayers / Founders:If you or your business claims an export-linked deduction on quota premium or similar receipts, review the facts of your own case with your CA before relying on any CBDT circular, since courts may not treat it as binding.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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