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2015 (7) TMI 573

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..... as have already held by order in M/s Kalapet Primary Agricultural Credit Cooperative Society, Pondicherry v. The Income Tax Officer (2015 (7) TMI 556 - MADRAS HIGH COURT) that all authorities, civil, criminal and judicial, coming within the territory of the High Court, shall act in the aid of the High Court, hence, the assessing officer is bound by the order passed by the jurisdictional High Court without taking any stand that the High Courts of other States are taking a different view, thus no other option except to set aside the impugned order, for the simple reason that the appeal is pending for consideration. Accordingly, the impugned order is set aside. It is open to the second respondent-Commissioner of Income Tax (Appeals)-17, .....

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..... o assessment years 1999-2000 to 2002-2003 and on the claim of depreciation on fixed assets. Finally the Income Tax Appellate Tribunal remanded the appeal back to the file of the assessing officer for de novo adjudication. Again the assessing officer has concluded the case rejecting the claim of corpus donations under Section 11(1)(d) of the Income Tax Act, resultantly, he further proceeded to disallow the claim of depreciation on fixed assets. Having been aggrieved by the assessment order, the petitioner preferred an appeal before the Commissioner of Income Tax (Appeals), Chennai. In the meanwhile, subsequent to the order of assessment, recovery proceedings were initiated, therefore, the petitioner was constrained to move a stay applicati .....

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..... ratio laid down by this Court in the case of Commissioner of Income Tax v. Rao Bahadur Calawala Cunnan Chetty Charities reported in 135 ITR 485. But ignoring the ratio laid down by the jurisdictional High Court along with the decisions of the jurisdictional Tribunal in G.K.R.Charities v. Deputy Director of Income Tax (Exemptions) reported in 51 SOT 538 and in Joint Commissioner of Income Tax v. Bhaktavatsalam Memorial Trust reported in 30 ITR 264, referring to the decisions of the Kerala High Court in the case of Lissie Medical Institutions v. Commissioner of Income Tax, 348 ITR 344; of the Delhi High Court in the case of Director of Income Tax (Exemptions) v. Charanjiv Charitable Trust, 43 Taxman.com 300 and in Deputy Director of Income T .....

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..... further submitted that when the petitioner has taken support of the decision of this Court in the case of Commissioner of Income Tax v. Rao Bahadur Calawala Cunnan Chetty Charities reported in 135 ITR 485 along with the decisions of the jurisdictional Tribunal in G.K.R.Charities v. Deputy Director of Income Tax (Exemptions) reported in 51 SOT 538 and in Joint Commissioner of Income Tax v. Bhaktavatsalam Memorial Trust reported in 30 ITR 264, the assessing officer, being aware of the judgments passed by various High Courts, has come to the conclusion that there is a serious dispute on the issue whether the assessee is entitled to the depreciation claim for the assessment year 2009-10, therefore, no fault can be found with the assessing offi .....

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..... sing Officer/TRO and his immediate superior. A higher superior authority should interfere with the decision of the AO/TRO only in exceptional circumstances e.g. where the assessment order appears to be unreasonably highpitched or where genuine hardship is likely to be caused to the assesee. The higher authorities should discourage the assessee from filing review petitions before them as a matter of routine or in a frivolous manner to gain time for withholding payment of taxes. C. Guidelines for staying demand (i) A demand will be stayed only if there are valid reasons for doing so. Mere filing an appeal against the assessment order will not be sufficient reason to stay the recovery of demand. A few illustrative situations where stay c .....

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..... r is bound by the order passed by the jurisdictional High Court without taking any stand that the High Courts of other States are taking a different view, I have no other option except to set aside the impugned order, for the simple reason that the appeal is pending for consideration. Accordingly, the impugned order is set aside. It is open to the second respondent-Commissioner of Income Tax (Appeals)-17, Chennai, the appellate authority to expedite the hearing of the pending appeal and dispose of the same on merits and in accordance with law at the earliest possible time. Needless to mention that the observations made in this order shall not be carried away by the appellate authority for consideration of the appeal on merits. The writ pet .....

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