Views expressed by smaller bench of a SC in case of Azadi Bachao Andolan on tax avoidance are binding on the HC

Views expressed by smaller bench of a Supreme Court in the case of Azadi Bachao Andolan on tax avoidance are binding on the High Courts because it has interpreted the decision of the larger bench in the case of McDowell & Company. Accordingly, the transactions was not a colourable transaction. Recently, the Calcutta High Court in the case of Oberoi Hotels Pvt. Ltd. (ITA No. 13 of 2001) (Judgment date: 17 March 2011) held that since the decision of a two bench judge of a Supreme Court in the case of Union of India vs. Azadi Bachao Andolan (2003) 263 ITR 706 (SC) has interpreted the decision...