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TMI Blog2024 (12) TMI 916X X X X Extracts X X X X X X X X Extracts X X X X ..... he judgment passed by the Delhi High Court has failed to take notice of the judgment passed by this Court in case CIT Vs. Punjab Financial Corporation [ 2007 (3) TMI 162 - HIGH COURT, PUNJAB AND HARYANA] and therefore, a different view was taken by the Delhi High Court and the same could not be binding upon this Court as it is a settled law that earlier judgment passed by this Court would have a binding precedential value over and above any different view taken by any other High Court. The law has been settled by the Supreme Court in Official Liquidator Vs. Dayanand [ 2008 (11) TMI 679 - SUPREME COURT] wherein held the law laid down in a decision delivered by a Bench of larger strength is binding on any subsequent Bench of lesser or co-equal strength and it would be inappropriate if a Division Bench of two Judges starts overruling the decisions of Division Benches of three Judges. Thus, question No. (ii) is also answered in favour of the assessee Liability payable by the assessee on account of electricity duty payable can be set off by way of allotment of equity shares and that it amounts to discharging of liability u/s 43B - HELD THAT:- The word actually paid has been, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pension fund, ignoring the submission of the revenue that there was no proof that the impugned claim by the assessee was as per the Provident Funds Act, 1925? (ii) Whether on the facts and in the circumstances of the case, learned ITAT was right in law in ignoring the ratio of the judgment of Hon'ble Delhi High Court in the case of Sony India P. Ltd. vs. CIT reported in 285 ITR 213 (Del.) in which it was held that allowance of an expenditure of the nature described in Section 36 (1) (iv) of the Income Tax Act, 1961 under Section 37 (1) would render nugatory the conditions and limitations subject to which the provisions of Section 30 to 36 make the deductions envisaged therein admissible? (iii) Whether on the facts and in the circumstances of the case, learned ITAT was right in law in upholding the order of CIT(A) that liability payable by the assessee on account of electricity duty payable can be set off by way of allotment of equity shares and that it amounts to discharging of liability u/s 43B of the IT Act, 1961, which requires that liability has to be actually paid by the assessee? 3. The ITAT vide its judgment also noticed the view taken by the Gujrat High Court in case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Bench of lesser or co-equal strength and it would be inappropriate if a Division Bench of two Judges starts overruling the decisions of Division Benches of three Judges. The Court further held that such a practice would be detrimental not only to the rule of discipline and the doctrine of binding precedents but it will also lead to inconsistency in decisions on the point of law; consistency and certainty in the development of law and its contemporary status - both would be immediate casualty Keeping in view thereto question No. (ii) is also answered in favour of the assessee and against the appellant. 6. As regards to question No.3, whether the electricity duty payable by the assessee on account of treating as set off by way of allotment of equity shares and thereby discharging the liability under Section 43B of the IT Act, 1961 is concerned, we noticed that ITAT considered the appeal preferred by the revenue and observed as under: Brief facts are that original return was filed on 29.12.1999 which was processed under section 143 (1) (a) of the Act on 18.12.2000. The assessee subsequently filed revised return on 30.3.2001. It was noticed by the learned Assessing Officer, from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any sum payable by the assessee as an employer in lieu of any leave at the credit of his employee, or (g) xxx (h) xxx Provided that nothing contained in this Section except the provisions of clause(h) shall apply in relation to any sum which is actually paid by the assessee on or before the due date applicable in his case for furnishing the return of income under sub-section (1) of section 139 in respect of the previous year in which the liability to pay such sum was incurred as aforesaid and the evidence of such payment is furnished by the assessee along with such return. Explanation 1- For the removal of doubts, it is hereby declared that where a deduction in respect of any sum referred to in clause(a) or clause(b) of this section is allowed in computing the income referred to in Section 28 of the previous year (being a previous year relevant to the assessment year commencing on the 1st day of April, 1983, or any earlier assessment year) in which the liability to pay such sum was incurred by the assessee, the assessee shall not be entitled to any deduction under this Section in respect of such sum in computing the income of the previous year in which the sum is actually paid by h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been converted into a loan or borrowing or debenture or any other instrument by which the liability to pay is deferred to a future date shall not be deemed to have been actually paid. Explanation 3CA -xxxxx Explanation 3D- For the removal of doubts, it is hereby declared that a deduction of any sum, being interest payable under clause(e) of this section, shall be allowed if such interest has been actually paid and any interest referred to in that clause which has been converted into a loan or advance or debenture or any other instrument by which the liability to pay is deferred to a future date shall not be deemed to have been actually paid. Explanation 4- For the purpose of this section,- (a) public financial institutions shall have the meaning assigned to it in section 4A of the Companies Act, 1956 (1 of 1956); (aa) scheduled bank shall have the meaning assigned to it in the Explanation to clause (iii) of Sub Section (5) of section 11; (b) State financial corporation means a financial corporation established under Section 3 or Section 3A or an institution notified under Section 46 of the State Financial Corporation Act, 1951 (63 of 1951); (c) State industrial investment corpora ..... X X X X Extracts X X X X X X X X Extracts X X X X
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