1995 (9) TMI 48 - HC - Income Tax

Summary

Issues involved:
The judgment involves questions related to the Tribunal's authority to rehear an appeal, the binding nature of previous decisions, the jurisdiction of a Special Bench, and the classification of a company as industrial.

Rehearing of Appeal:
The Tribunal set aside the assessment for the assessment year 1975-76 by its order dated September 5, 1980, in Income-tax Appeal No. (Gau) of 1979 on the Departmental appeal. The Tribunal justified taking up the case again on the assessee's appeal against the same assessment, leading to a redeciding of the case. The Tribunal concluded that the Appellate Assistant Commissioner's decision required a fresh assessment in accordance with law.

Binding Nature of Previous Decisions:
The Tribunal was justified in following the decision of the Jammu and Kashmir High Court in S. Mubarik Shah Naqshbandi v. CIT [1977] 110 ITR 217 as there was no contrary decision available. The Tribunal's decision was in line with the legal position that a decision of one High Court is not a binding precedent on another High Court.

Jurisdiction of Special Bench:
A Special Bench of the Tribunal was constituted to decide specific points referred by the President. However, the Special Bench also disposed of matters not referred to them. The Tribunal held that the Special Bench had no jurisdiction to decide on matters not referred to them, answering this question in the negative.

Classification of Company as Industrial:
The assessee claimed to be an industrial company engaged in building construction. The Income-tax Officer rejected this claim, but a Special Bench set aside the order and referred the matter back for reconsideration. The Tribunal found the order to be legal and within jurisdiction, answering this question in favor of the assessee.

This judgment, delivered by Judges D. N. Baruah and V. D. Gyani, addresses various legal issues concerning the Tribunal's authority, the binding nature of previous decisions, the jurisdiction of a Special Bench, and the classification of a company as industrial. The Tribunal's decisions were based on legal principles and the specific circumstances of the case, ultimately providing clarity on each issue raised.