TMI Blog1997 (9) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... the preliminary objection raised by the respondent to the maintainability of the petition, which is being disposed of by this order. The relevant facts only need be noticed in brief. The petitioner-assessee was a firm engaged in the business of production of motion pictures at Bombay. During the assessment year 1980-81, the firm had produced a film by the name of SUHAAG. The muharat was performed on January 12, 1979. The production of the film was completed in or about October, 1979. The film was released on November 16, 1979. A search and seizure action conducted by the Directorate of Enforcement, was carried out at the business premises of the assessee-firm and its partners, etc., under section 132 of the Income-tax Act somewhere at th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the High Court exercising jurisdiction over the assessing authority having jurisdiction to assess the assessee at the relevant time. On behalf of the petitioner, it is submitted that the appellate order of the Tribunal wherefrom the questions of law are being said to arise having been passed by the Tribunal at Delhi, the reference application filed at New Delhi is competent. It was also submitted that in addition, the jurisdiction of the High Court of Delhi is spelled out additionally by the fact that on December 8, 1992, the Commissioner of Income-tax-VIII has in exercise of the powers conferred by sub-section (1) of section 127 of the Act, passed an order whereby the powers of the Assessing Officer qua the assessee have been conferred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) Section 64 which has relevance for determining the jurisdiction of the Assessing Officer by reference to the place where the assessee carries on business, profession or vocation, has no relevance for determining the jurisdiction of the appellate authority/Tribunal; (ii) In considering the question as to the High Court to which a Bench having jurisdiction over more than one State has to make a reference, the basis adopted for determining the jurisdiction of the Bench of the Tribunal would be more appropriate than the basis adopted for determining the jurisdiction of the Income-tax Officer; (iii) It would be quite appropriate for the Bench to refer the question of law arising out of its own order in appeal to the High Court of the St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence throughout the territory in relation to which it exercises jurisdiction. The binding authority does not extend beyond its territorial jurisdiction. The decision of one High Court is not a binding precedent for another High Court or for courts or Tribunals outside its territorial jurisdiction (See CIT v. Thana Electricity Supply Ltd. [1994] 206 ITR 727 (Bom); CIT v. Ved Parkash [1989] 178 ITR 332 (P H); State of A. P. v. CTO [1988] 169 ITR 564 (AP); CIT v. Mohan Lal Kansal [1978] 114 ITR 583 (P H) and Raja Benoy Kumar Sahas Roy v. CIT [1953] 24 ITR 70; AIR 1954 Cal 225). In the case of CIT v. Thana Electricity Supply Ltd. [1994] 206 ITR 727, the Division Bench of the Bombay High Court has held : "A conjoint reading of sections 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 256 of the Income-tax Act, would again amount to conferring jurisdiction upon them to pronounce upon the constitutional validity of the provisions of the statute creating them, which would clearly be contrary to the well-settled position in law. Unless and until the Supreme Court or the High Court of the State in question, under article 226 of the Constitution, declares a provision of the Act to be ultra vires, it must be taken to be constitutionally valid and treated as such." On account of the abovesaid doctrine of precedents and the rule of binding efficacy of the law laid down by the High Court within its territorial jurisdiction, the questions of law arising for decision in a reference should be determined by the High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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