9911796707
TMI Blog2000 (8) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... eeding under sections 271B and 271(1)(c). It appears from the impugned order which was passed in the aforesaid impugned proceedings that it has been held amongst others that the writ petitioner is obliged to pay income-tax on the income which fetched from consultancy services rendered to Larsen and Toubro. This case has a slightly long history. The writ petitioner-company upon an agreement in writing rendered technical know-how and consultancy services to the Indian company, Larsen and Toubro. Admittedly, the writ petitioner-company is a foreign company. The petitioner earned a substantial amount on account of the fees paid by Larsen and Toubro being the Indian company. The writ petitioner on protest paid a sum of Rs. 7,87,72,407 on accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile doing so it was held by the Tribunal that the writ petitioner being a foreign company and having no place of business in India, the income fetched from the aforesaid transaction is not taxable. Mr. Murarka, learned counsel appearing for the writ petitioner, submits that the proceedings initiated by the assessing authority and the order passed by him is wholly an act without jurisdiction. He argues that when the Tribunal on the self-same facts and circumstances and considering all the materials has held that the petitioner is not obliged to pay any tax and, further, the tax which has already been paid is liable to be refunded, it was not open for the assessing authority to upset the judgment of the Tribunal. Such act is a gross breach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and it was open to the assessing authority to consider the same. Moreover, the writ petitioner should have preferred appeal against the impugned order. Mr. Murarka has drawn my attention to a portion of the judgment of the learned Tribunal and contends that the agreement and all other materials had been considered and while dwelling upon all aspects, the learned Tribunal had come to the aforesaid finding. Having heard the respective submissions of learned counsel. two points emerge from the bone of contentions of the parties : 1. Whether the concerned Income-tax Officer had assessed tax on the same income fetched from the consultancy services or not ? 2. Whether the concerned Income-tax Officer could do so in spite of the findings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Tribunal, at the present moment the findings of the learned Tribunal have reached finality. In my view, the venture which has been undertaken by the Income-tax Officer for making an assessment is absolutely an act of hierarchial indiscipline. This exercise is nothing short of setting the Tribunal's judgment at naught. It is a well-settled principle of law that the junior incumbent is supposed to obey and carry out the order and/or observations made by the superior authority, be it a judicial forum or a quasi-judicial forum or even in any administrative field. Therefore, I hold that the impugned order passed by the Income-tax Officer is wholly without jurisdiction and the same is liable to be set aside and I hereby do so. Mr. Sah ..... X X X X Extracts X X X X X X X X Extracts X X X X
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