III. Direct Taxes Case Laws:
1. DCIT Vs. Sh. Sham Sunder Sharma, I.T.A. No. 966/Chd/2014, Date of Order: 16.06.2015, ITAT - Chd
Whether orders of the ITAT are binding on the lower authorities and not following the same could invite contempt proceedings?
Held Yes.
It is a
clear case of showing disrespect to the order of the Tribunal.
Therefore, contempt proceedings could have been initiated against the
CIT (A) for blatantly disobeying the order of the Tribunal. The Madhya
Pradesh High Court in Agrawal Warehousing & Leasing Ltd. vs. CIT
257 ITR 235 held that the CIT (A) cannot refuse to follow the order of
the Appellate Tribunal. The CIT (A) is a quasi – judicial authority and
is subordinate in judicial hierarchy to the Tribunal. The orders passed
by the Tribunal are binding on all the revenue authorities functioning
under the jurisdiction of the Tribunal. The principles of judicial
discipline require that the orders of the higher appellate authorities
should be followed unreservedly by the subordinate authorities (Union of India Vs. Kamlakshi Finance Corporation AIR 1992 SC 711 referred).
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2. Dharmayug Investments Ltd. Vs. ACIT, I.T.A. No. 1284/Mum/2013, Date of Order: 10.06.2015, ITAT - Mumbai
Whether
the net income or income after indexation, arising from transfer of
long term capital asset is to be included in the book profit for the
purpose of S. 115JB?
The
concept of indexation while computing the Long term capital gain cannot
be imported to the computation of book profit u/s. 115JB as per the
expressed provisions of the said section itself which is a complete code
in itself. Thus, in our opinion, the net amount on account of sale of
shares will alone be taken into account in computation of book profit
and not the amount of Long term capital gain after indexation.
(Please click here for judgment)
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