TMI Blog2020 (11) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... Sarvodaya Mutual Benefit Trust, Thellar [ 2019 (7) TMI 1151 - MADRAS HIGH COURT] wherein held there are only two methods of dealing such a situation. Firstly, if the decision is per incurium, a finding to the said effect has to be given. Secondly, the Court or the Tribunal 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. 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 considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant is liable for tax at maximum marginal rate? 2. Whether on 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? 3. Whether on 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? 2. We have heard Mr.N.V.Balaji, learned counsel for the appellant/assessee and Mr.J.Narayanaswamy, learned Senior Standing counsel for the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 the appellant/assessee; and Mr.J.Narayanaswamy, learned Senior Standing Counsel for the respondent/Revenue. 4.Before we go into the substantial questions of law, we are first required to decide as to whether the Tribunal could have rejected the assessee's appeal without following the decision in the case of Income-tax Officer, Ward I(1), Vellore vs. Sarvodaya Mutual Benefit Trust reported in [2013] 22 ITR(T) 277 (Chennai Trib.) arising out of an assessment in the case of the assessee's apex body Survodaya Mutual Benefit Trust. 5.In the said decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... late authorities should be followed unreservedly by the subordinate authorities. The mere fact that the order of the appellate authority is not acceptable to the department - in itself an objectionable phrase - and is the subject matter of an appeal can furnish no ground for not following it unless its operation has been suspended by a competent court. If this healthy rule is not followed, the result will only be undue harassment to assessees and chaos in administration of tax laws. 7.Mr.J.Narayanaswamy, learned Senior Standing Counsel for the Revenue strenuously sought to sustain the order passed by the Tribunal. Much of his submissions revolve on the merits of the case, which we do not propose to go into, as we are on the ver ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the succeeding Tribunal is required in the interest of comity of judicial precedents as well as in the maintenance of judicial decorum and decency. Otherwise, it will lead to an assumed superiority on the part of the succeeding Tribunal as if it had discovered something which had escaped the attention of the former Tribunal and it alone was able to find out the truth, while the former Tribunal was not able to do so. 9.The aforementioned decisions will clearly indicate that 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 Ben ..... X X X X Extracts X X X X X X X X Extracts X X X X
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