TMI Blog2019 (8) TMI 794X X X X Extracts X X X X X X X X Extracts X X X X ..... in the eyes of law as on date. Accordingly, the grounds raised by the assessee is allowed. Said order was pronounced in the Open Court at the time of hearing itself. - Appeal of the assessee is allowed. - ITA No. 1244/CHD/2018 - - - Dated:- 31-7-2019 - SMT. DIVA SINGH, JM SMT.ANNAPURNA GUPTA, AM For the Appellant : Shri Vineet Krishan For the Respondent : Smt. Chander Kanta, Sr.DR ORDER PER DIVA SINGH The present appeal has been filed by the assessee wherein the correctness of the order dated 12.07.2018 of CIT(A)-4, Ludhiana pertaining to 2013-14 assessment years is assailed on the following grounds : 1. That the order passed under section 250(6) by the Learned Commissioner of Income Tax (Appeals)-4, Ludhiana in Appeal No. 23/ROT (10277) CHD/ IT/CIT (A)-4/LDH/ 2016-17 dated 12.07.2018 is contrary to law and facts of the case. 2. That in the facts and circumstances of the case, the Id. Commissioner of Income Tax (Appeals) gravelly erred in upholding the action of the Id. Assessing Officer who had made addition of ₹ 4,22,124/- on account of payment of EPF and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact and is not in dispute. The CIT(A) has upheld the additions made in the impugned order relying upon the decision of the Gujrat High Court in the case of CIT Vs Gujrat State Road Transport Corp. 366 ITR 170 (Gujrat)) on which heavy reliance has been placed by the Revenue. The assessee as noted, relies on the order of the Co-ordinate Bench dated 29.03.2019 in the case of New Time Contractors and Builders where the issue was decided in the following manner : (10) We have considered the submissions of both the parties and perused the material available on record. In the present case, it is an admitted fact that there was delay in depositing the employees' contribution of provident fund and ESIC. However, it is accepted by the AO that the deposit was made before filing of the return of income on 27.09.2013. (11) On a similar issue the Hon'ble Jurisdictional High Court in the case of CIT vs. Hernia Embroydery Mills-(p.) Ltd.(supra) held as under: The second proviso to section 43B of the Income-tax Act, 1961, omitted by the Finance Act, 2003, with effect from April 1, 2004, was clarificatory in nature and was to operate retrospective ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clared by the highest court in the state is binding on authorities or Tribunals under its superintendence and they cannot ignore it. For addressing the position of the High Court, reference may be made to the decision of the Apex Court in the case of Baradakanta Mishra v. Bhimsen Dixit AIR 1972 SC 2466 wherein the Court held that it would be anomalous to suggest that a Tribunal over which a High Court has superintendence can ignore the law declared by it and if a Tribunal can do so, all the subordinate courts can equally do so, for there is no specific provision as in respect of Supreme Court, making the law declared by the High Court binding on subordinate Courts. The court further observed that it is implicit in the power of supervision conferred on a superior Tribunal that all the Tribunals subject to its supervision should confirm to the law laid down by it. If the Tribunals defy their jurisdictional High Court, there would be confusion in the administration of law. At this point, we may also refer to the decision of the Allahabad High Court in K. N. Agarwal v. CIT [1991] 189 ITR 769 wherein the Court felt the need to address the import and necessity for the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ITAT wherever the Bench of the ITAT may be situated. However, at the same time in the face of the decision of the jurisdictional High Court no amount of stretching of the doctrine of stare decisis, can judgments of one High Court be given the status of a binding precedent so far as other High Courts or Tribunal within their territorial jurisdiction are concerned. It is well settled that any such attempt will go counter to the very doctrine of stare decisis and also the various decisions of the Supreme Court which have interpreted the scope and ambit thereof. The issue as far as the present proceedings are concerned, can be said to have been addressed by the said decision. In the facts of the present case, we have a decision of the jurisdictional High Court which stands in the eyes of law and we also have a decision of the non jurisdictional High Court on which the ld. CIT(A) has placed reliance. Considering the fact that the assessee is within the territorial jurisdiction of the Hon'ble Punjab Haryana High Court and the ld. CIT(A) an authority also within the territorial jurisdiction of the Hon'ble Punjab Haryana High Court, we find that the CIT(A) in the facts of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subordinate tribunal is subject to the writ jurisdiction of the High Court under Article 226 of the Constitution. Just as the judgments and orders of the Supreme Court have to be faithfully obeyed and carried out throughout the territory of India under Article 142 of the Constitution, so should be the judgments and orders of the High Court by all inferior courts and Tribunals subject to their supervisory jurisdiction within the State under Arts. 226 and 227 of the Constitution. The Board of Revenue cannot refuse to carry out the directions of the High Court. (1961) 1 SCR 474, Foll. (Para 12) 4.6 In this genre, it may not be out of place to refer to the oft quoted decision of the Bombay High Court in the case of CIT Vs Thana Electricity Supply Ltd. (1994) 206 ITR 727 (Bom) or alternately in the genre of cases being cited, it is necessary to also refer to this decision wherein the Court while enunciating the general principles which are in regard to precedents held that the decisions of the High Courts are binding on the subordinating Courts and authorities or Tribunals in its superintendence throughout the territories in relation to which it exercise jurisdiction. For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stare decisis, can judgments of one High Court be given the status of a binding precedent so far as other High Courts or Courts or Tribunals within their territorial jurisdiction are concerned. Any such attempt will go counter to the very doctrine of stare decisis and also the various decisions of the Supreme Court which have interpreted the scope and ambit thereof. The fact that there is only one decision of any one High Court on a particular point or that a number of different High Courts have taken identical views in that regard is not at all relevant for that purpose. Whatever may be the conclusion, the decisions cannot have the force of binding precedent on other High Courts or on any subordinate courts or Tribunals within their jurisdiction. That status is reserved only for the decisions of the Supreme Court which are binding on all courts in the country by virtue of article 141 of the Constitution. 4.7 Similar to the position discussed above with regard to the binding nature of judicial precedent, the Court s opinion on judicial discipline also need be referred to as held in the decision of the Supreme Court in the case of Union of India vs. Kamalakshi Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nistration of tax laws. 4.8 The said principle has been re-iterated over the years in a number of cases. Reference may also be made to the decision of the Apex Court in the case of Bhopal Sugar Industries vs. Income Tax Officer, Bhopal [AIR 1961 SC 182] wherein at page 622 it was held ; (a) If a subordinate tribunal refuses to carry out directions given to it by a superior tribunal in the exercise of its appellate powers, the result will be chaos in the administration of justice and we have indeed found it very difficult to appreciate the process of reasoning by which the learned Judicial Commissioner while roundly condemning the respondent for refusing to carry out the directions of the superior Tribunal, yet held that no manifest injustice resulted from such refusal. 4.9 It may also be appropriate to refer to the recent decision dated 28.03.2017 of the Apex Court in CIT(A) No.2315/2007 in the case of DCIT Vs M/s Raghuvir Synthetics Ltd., Ahmedabad. A perusal of the said decision would show that the issue for consideration before the Apex Court in the said decision was whether a particular adjustment made by the AO u/s 143(1)(a) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as subsequently followed by Alembic Glass Industries Ltd. V. CIT (supra) and the registered office of the respondent assessee being in the State of Gujarat, the law laid down by the Gujarat High Court was binding. (See Taylor Instrument Com. (India) Ltd. v. Commissioner of Income Tax - (1998) 232 ITR 771, Commissioner of Gift Tax v. J.K. Jain - (1998) 230 ITR 839, Commissioner of Income Tax v. Sunil Kumar - (1995) 212 ITR 238, Commissioner of Income Tax v. Thana Electricity Supply Ltd. - (1994) 206 ITR 727, Indian Tube Company Ltd. v. Commissioner of Income Tax Ors. - (1993) 203 ITR 54, Commissioner of Income Tax v. P.C. Joshi B.C. Joshi - (1993) 202 ITR 1017 and Commissioner of Income Tax, West Bengal, Calcutta v. Raja Benoy Kumar Sahas Roy - (1957) 32 ITR 466). Therefore, so far as the present case is concerned, it cannot be said that the issue was a debatable one. 12. In view of the above submissions, in our considered view the order passed by the CIT (Appeals), the Income Tax Appellate Tribunal and also the order of the Gujarat High Court impugned herein cannot sustain and are set aside as they have wrongly held that the issue was debatable and could not be co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Customs Act. The High Court confirmed the order of acquittal passed by the trial Court holding that it cannot be said that a condition of the licence amounted to an order under the Act and, therefore, no offence was committed by the company. The High Court also passed an order directing the seized goods to be sold and the sale proceeds to be deposited in the Court. After those proceedings, a notice was issued by the Collector on the company to show cause why the amount should (not) be confiscated and penalty should not be imposed. It was contended on behalf of the company that once the High Court decided that the breach of condition of licence could not be said to be a breach of order, the Collector had no jurisdiction to issue show-cause notice. It was submitted that the decision of a High Court on a point was binding on all subordinate Courts and inferior tribunals within its territorial jurisdiction. The notice was, therefore, liable to be quashed. The precise question before the Hon'ble Supreme Court was as to whether or not the decision rendered by a High Court would bind all subordinate Courts and inferior tribunals within its territorial jurisdiction. It was argued th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d counsel for the petitioner is well founded and deserves to be upheld. It is not even the case of the Department that the decision of this Court in Bharat Textiles Works (supra) has been stayed by the Hon'ble Supreme Court. Hence, so far as this Court is concerned, the point is concluded. It is settled law that unless and until decision is reversed by a superior Court, it holds the field. It also cannot be gainsaid that the second respondent is an inferior Tribunal subject to supervisory jurisdiction of this Court and this Court can exercise jurisdiction over him by invoking Art. 227 of the Constitution. In our considered view, therefore it was not open to the second respondent to ignore the decision of this Court or to refuse to follow it on a specious plea of verdict being not accepted by the Department and that matter was carried further and was pending before Supreme Court. In Baradakanta vs. Bhimsen Dixit AIR 1972 SC 2465, when a member of superior judicial service functioning as Commissioner of Hindu Religious Endowments, Orissa, refused to follow the decision of the High Court, contempt proceeding had been initiated against him and he was punished by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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