TMI Blog2019 (7) TMI 1151X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Court or the Tribunal is of the view that the decision rendered earlier is not acceptable to it, then the option is to refer it to a Larger Bench of the Court or the Tribunal. The Methodology adopted by the Tribunal, while passing the impugned order, is incorrect. Therefore, we are inclined to remand the matter to the Tribunal for fresh consideration. We left it open to the Tribunal to take note of the decision in Sarvodaya Mutual Benefit Trust [ 2013 (11) TMI 1270 - ITAT CHENNAI] and if for reasons acceptable to it, the decision can be applied to the facts of the case which is well open to do so, or for if any other reasons, the decision is found to be not acceptable to the Tribunal, then the matter may be referred to the Large ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... beneficiaries is indeterminate and therefore the appellant is liable for tax at maximum marginal rate? ii. Whether on the facts and circumstances of the case, the Tribunal was right in holding that the appellant is liable to deduct tax at source in respect of interest on borrowings, disregarding the fact the individual beneficiaries for whose benefit the funds have been borrowed do not have taxable income and are not liable to deduct tax at source? iii. Whether on the facts and circumstances of the case, the Tribunal was right in holding that the principle of mutuality does not apply to the appellant and that its income is liable to be taxed? 3.Heard Mr.N.V.Balaji, learned counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal can refuse to follow the decision by distinguishing it on the factual matrix. If for other than these two reasons, the Court or the Tribunal is of the view that the decision rendered earlier is not acceptable to it, then the option is to refer it to a Larger Bench of the Court or the Tribunal. In this regard, it is worthwhile to refer to the decision of the Supreme Court in Union of India and Ors. vs. Kamlakshi Finance Corporation reported in (1992) 1 SCC 648 (SC), wherein the Court held as follows:- 6. ............The principles of judicial discipline require that the orders of the higher appellate authorities should be followed unreservedly by the subordinate authorities. The mere fact that the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by a Fuller Bench of this court, the same is binding on us and, therefore, we cannot rely on the observation of the Bombay High Court which had dissented from the Full Bench decision of this court. Secondly, even assuming that the observations of the Bombay High Court referred to above can be relied on, still the position is that the succeeding Tribunal must refer to the facts which were before the former Tribunal, but which were not taken into account by that Tribunal and must observe that if those facts had been taken into account by the former Tribunal the former Tribunal itself would have come to a different conclusion. Such a statement in the order of the succeeding Tribunal is required in the interest of comity of judicial precede ..... X X X X Extracts X X X X X X X X Extracts X X X X
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