9911796707
TMI Blog1999 (3) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... , the company had claimed that the following amounts should not be included for the purposes of computing total turnover, for the purposes of deduction under section 80HHC. Excise duty Octori MST CST Depot S.T. Scrap Sale For claiming so, the assessee relied on the decision of the Tribunal in the cases of, Avon Cycles Ltd. v. Asstt. CIT [1997] 59 TTJ (Chd.) 75 and Sudarshan Chemical Industries Ltd. v. Dy. CIT [1997] 60 ITD 629 (Pune). In the intimation sent to the assessee, the Assessing Officer included the above items for the purposes of computing the total turnover for deduction under section 80HHC. The Assessing Officer had remarked as under: "Even there is no consensus on this issue among Tribunals, in the case of Bomba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... darshan Chemical Industries Ltd. was of a binding nature as held in the case of Union of India v. Kamlakshi Finance Corpn. Ltd. [1992] Suppl. (1) SCC 648. The CIT(A) was not convinced by the arguments put before him and rejected the appeal of the assessee observing as under : "I do not agree with the appellant. The binding nature of the ITAT's decision is only for that case and not in respect of other cases. I therefore, find no infirmity in the order of the Assessing Officer, who had followed the decision of Pond's India Ltd. while, deciding the issue before him. No mistake apparent from record can be said to have occurred and no interference is therefore called for in the order of the Assessing Officer." 5. Shri M.K. Kulkarni, the lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notice of the Assessing Officer and the learned CIT(A) but both the authorities below held that they were not bound by the decision of the Pune Bench though both of them were working under the jurisdiction of Pune Bench. This action on the part of authorities below is flagrant disregard and disrespect to the provisions of law. In the case of Kamlakshi Finance Corpn. Ltd. which was cited before the authorities below, it has clearly been held that the decisions of higher authorities on the same issue are binding on subordinate authorities and should be followed unreservedly. Though this decision was pronounced under Central Excises and Salt Act, 1944 yet it lays down a vital proposition of law. Here we would like to reproduce the operativ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld lose revenue and would also have no remedy to have the matter rectified is also incorrect. Sec. 35E confers adequate powers on the department in this regard. In the light of these amended provisions, there can be no justification for any Asstt. Collector or Collector refusing to follow the order of the Appellate Collector or the Appellate Tribunal, as the case may be, even where he may have some reservations, on its correctness. He has to follow the order of the higher appellate authority. This may instantly cause some prejudice to the Revenue but the remedy is also in the hands of the same officer. He has only to bring the matter to the notice of the Board or the Collector so as to enable appropriate proceedings being taken under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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