Case Law Details
Steel Authority of India Ltd Vs ACIT (ITAT Delhi)
ITAT Delhi held that directions issued by a superior appellate authorities are binding on the Assessing Officers and Assessing Officer is required to strictly follow the directions of the appellate authorities and decide the issue as per the directions of the appellate authorities.
Facts- Assessee is a company stated to be engaged in the business of manufacturing and sale of steel and steel products etc. Assessee electronically filed its original return of income for A.Y. 2010-11 declaring income of Rs.9,58,330.01 lakhs. Subsequently, assessee revised the return of income by revising the income to Rs.9,57,228.23 lakhs. The case of the assessee was selected for scrutiny and assessment was framed u/s. 143(3) of the Act vide and the total income was determined at Rs.9,84,952.18 lakhs.
Aggrieved by the order of AO, assessee carried the matter before the CIT(A) who allowed the appeal of the assessee and also gave certain directions to AO. Consequent to the order of CIT(A), AO passed order u/s 250 wherein the total income was computed at Rs.9,60,862.88 lakhs. Against the aforesaid order passed by AO, assessee once again carried the matter before CIT(A) who disposed off the appeal. Aggrieved by the order of CIT(A), assessee is now before the Tribunal.
Conclusion- Held that it is the settled law that directions issued by a superior appellate authorities are binding on the Assessing Officers and Assessing Officer is required to strictly follow the directions of the appellate authorities and decide the issue as per the directions of the appellate authorities. It is not open to AO to ignore the directions of the appellate authorities unless the directions of the appellate authorities are overruled/ stayed by higher judicial forum.
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