1999 (3) TMI 122 - AT - Income Tax

Summary

Issues Involved:
The appeal challenges the order of the CIT(A) upholding the order of the A.O. u/s 154 of the Income-tax Act, 1961 regarding the inclusion of certain items for computing total turnover for deduction u/s 80HHC.

Issue 1 - Inclusion of Items for Computing Turnover:
The assessee, engaged in manufacturing, excluded Excise Duty, Octroi, MST, CST, Depot S.T., and Scrap Sale from turnover for deduction u/s 80HHC, citing Tribunal decisions. The A.O. included these items, citing lack of consensus among Tribunals. The assessee's application u/s 154 was rejected by the A.O., who followed a Bombay Tribunal decision. The CIT(A) upheld this decision, stating the ITAT's decision is binding only for that case.

Issue 2 - Binding Nature of Tribunal Decisions:
The assessee argued that the decision of the Pune Bench in Sudarshan Chemical Industries Ltd. was binding on the A.O. due to jurisdiction. The authorities below disregarded this, leading to the appeal. The ITAT emphasized that higher authorities' decisions are binding on subordinate authorities, citing Kamlakshi Finance Corpn. Ltd. The ITAT highlighted the need for authorities to follow orders of higher appellate authorities, as per judicial discipline.

Conclusion:
The ITAT reversed the findings of the authorities below, directing the A.O. to accept the assessee's version. The appeal was allowed, emphasizing the binding nature of higher authorities' decisions on lower authorities in the judicial hierarchy.