TMI Blog1995 (9) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... up the case again, on the assessee's appeal against the same assessment and in passing orders thereon again in I. T. A. No. 296/(Gau) of 1979 ? (ii) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that it has got no option but to follow the decision of the High Court if no contrary decision is available ? (iii) Whether, on the facts and in the circumstances of the case, the Special Bench of the Tribunal which was constituted for deciding only the validity of the assessment, was justified in deciding the other issues also, raised by the assessee ? (iv) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in setting aside the order relating to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case on other grounds as well, as raised by the assessee in his appeal. The facts relating to the questions, taking them in their serial order, are as follows : Taking up the first question as noted above, which relates to the appeals preferred by both the assessee as Well as the Department before the Tribunal against the order passed by the Appellate Assistant Commissioner, the Department's appeal was on the limited question against the relief of Rs. 48,896 allowed by the Appellate Assistant Commissioner in the contract account. This appeal was heard separately and disposed of by the Tribunal, vide its order dated September 5, 1980, resulting in the setting aside of the order of the Appellate Assistant Commissioner on the point and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the lower authorities, the facts of the case merit that we set aside the orders of the lower authorities and restore the case to the file of the Income-tax Officer which we do with the specific direction that the assessment in the case of the assessee be framed afresh in accordance with law and after giving a reasonable opportunity of being heard to the assessee and specifically in the light of this categorical finding of fact by the Appellate Assistant Commissioner that there was no work-in-progress. This fact finds mention in paragraph 7 of the impugned order of the Appellate Assistant Commissioner. The Income-tax Officer, having based the addition mainly on this score and the Appellate Assistant Commissioner having granted relief to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llate court acting under the Code of Civil Procedure. " In the instant case, the Department's appeal was only in respect of Rs. 48,896. However, the assessee's appeal was on some other grounds also. Therefore, the Tribunal was justified in taking up the appeal and passing the order. So far question No. 2 is concerned, counsel for the assessee contended that the Tribunal's decision to follow the decision of the Jammu and Kashmir High Court in S. Mubarik Shah Naqshbandi v. CIT [1977] 110 ITR 217 was justified inasmuch as the Tribunal had no option but to follow the decision as there was no other decision. The Jammu and Kashmir High Court in S. Mubarik Shah Naqshbandi's case [1977] 110 ITR 217 held thus : " In the present case the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it should generally be followed by a co-ordinate Bench of the same High Court. If the co-ordinate Bench in the subsequent case wants the earlier decision to be reconsidered, it should refer the question at issue to a larger Bench." In the said case, it was further held that the decision of one High Court is not a binding precedent on another High Court. In the said case, it was further held thus : " (d) The decision of one High Court is neither binding precedent for another High Court nor for courts or Tribunals outside its own territorial jurisdiction. It is well-settled that the decision of a High Court will have the force of binding precedent only in the State or territories on which the court has jurisdiction. In other States or o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal was constituted in the present case for a decision in respect of the points referred by the President to the Special Bench. While considering the points referred, the said Special Bench also disposed of some other matters which were not referred. When the Special Bench took up the points besides the points referred, there was no objection. Counsel for the assessee submitted that as no objection was raised at the time of hearing, this could not be challenged thereafter. The Special Bench of the Tribunal was constituted to decide the points referred. In the absence of such reference, the Special Bench did not have any jurisdiction to consider the points other than those referred. In view of the above, we are of the opinion tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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