Case Law Details
Brief of the Case
Bombay High Court held In the case of HDFC Bank Ltd. vs. DCIT that it is not open for the tribunal to disregard the binding decision of jurisdictional high court. Once there is a binding decision of jurisdictional high Court, the same continues to be binding on all authorities within the State till such time as it stayed and / or set aside by the Apex Court or this very Court takes a different view on an identical factual matrix or larger bench of this Court takes a view different from one already taken. This is in view of the manner in which the order of the Tribunal chosen to disregard and/or circumvent the binding decision of this Court in respect of the same assessee for an earlier assessment year. This is a clear case of judicial indiscipline and creating confusion in respect of issues which stand settled by the decision of this court. So, we set aside the order of tribunal in it’s entirely and restore the issue to the tribunal to decide it afresh on its own merits and accordance with law.
Facts of the Case
By order dated 23rd September, 2015, the Tribunal dismissed the petitioner’s appeal relating to the Assessment Year 200809 on the issue of applicability of Section 14A to disallow a portion of the interest paid on borrowed funds in respect of investments made in tax free securities. This when it has own Funds in excess of investments made in the securities and further these securities are held as stock in Trade.This dismissal of the appeal, submit the petitioner, inspite of the issue being concluded on both the grounds in its favour by the binding decisions of this Court.
Contention of Appellant
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