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TMI Blog1995 (3) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of section 214 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), on the excess amount paid by him. It is the case of the petitioner that it is a partnership-firm engaged in the business of air-conditioning, having its principal office at Baroda. The petitioner filed income-tax returns for the assessment years 1980-81 and 1981-82 before the Income-tax Officer, Circle-I, Ward-A. The Income-tax Officer made the assessment order and held that the petitioner was entitled to refund of certain amounts. He, however, did not allow interest on the ground that the last instalment of the advance tax was not paid by the petitioner within the stipulated period, though it was paid before the end of the financial year. B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orks [1978] 114 ITR 28. He strenuously argued that the action of the Commissioner of Income-tax (respondent No. 2) in not following the decision in the case of Bharat Textile Works [1978] 114 ITR 28 was illegal and improper. He was bound to follow the law declared by this court. It is not open to a subordinate court or an inferior Tribunal to ignore or keep aside a decision of this court and to decide the matter as per his sweet will. The impugned order thus suffers from legal infirmity and requires to be interfered with. Mr. M. J. Thakore, learned counsel appearing for the Revenue, on the other hand, submitted that the matter is pending before the Supreme Court and it cannot be said that any error of law apparent on the face of record has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt is binding on all subordinate courts and Tribunals within the territory to which it exercises the jurisdiction. In Bhopal Sugar Industries Ltd. v. ITO [1960] 40 ITR 618 (SC), the Income-tax Officer (subordinate authority) refused to carry out clear and unambiguous directions of the Income-tax Appellate Tribunal (superior authority). Deprecating it, their Lordships of the Supreme Court observed (page 622): " Such refusal is in effect a denial of justice, and is furthermore destructive of one of the basic principles in the administration of justice based as it is in this country on a hierarchy of courts. If a subordinate Tribunal refuses to carry out directions given to it by a superior Tribunal in the exercise of its appellate powers, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Court would bind all subordinate courts and inferior Tribunals within its territorial jurisdiction. It was argued that there was no provision similar to article 141 of the Constitution making the law declared by a High Court binding on all courts and Tribunals within its territorial jurisdiction. Considering relevant provisions of the Constitution and the power of High Court, Subba Rao J. (as he then was), observed (page 1905) : " This raises the question whether an administrative Tribunal can ignore the law declared by the highest court in the State and initiate proceedings in direct violation of the law so declared. Under article 215, every High Court shall be a court of record and shall have all the powers of such a court including t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Supreme Court in a number of subsequent decisions (see M. Padmanabha Setty v. K. P. Papiah Setty, AIR 1966 SC 1824 ; Kausalya Devi Bogra v. Land Acquisition Officer, AIR 1984 SC 892 and Bishnu Ram Borah v. Parag Saikia, AIR 1984 SC 898). In our opinion, the submission of learned counsel for the petitioner, is well-founded and deserves to be upheld. It is not even the case of the Department that the decision of this court in Bharat Textile Works' case [1978] 114 ITR 28 has been stayed by the Supreme Court. Hence, so far as this court is concerned, the point is concluded. It is settled law that unless and until the decision is reversed by a superior court, it holds the field. It also cannot be gainsaid that the second respondent is an inf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n a hierarchical system of courts that there are decisions of the supreme appellate tribunal which do not attract the unanimous approval of all members of the judiciary. When I sat in the Court of Appeal I sometimes thought the House of Lords was wrong in overruling me. Even since that time there have been occasions, of which the instant appeal itself is one, when, alone or in company, I have dissented from a decision of the majority of this House. But the judicial system only works if someone is allowed to have the last word and if that last word, once spoken, is loyally accepted. " We are very clear and we have no doubt in our minds that when a point is concluded by a decision of this court, all subordinate courts and inferior Tribunal w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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