COMMISSIONER OF INCOME TAX Vs. NIRMALABAI K DAREKAR

JUDGEMENT

(1.) TWO questions are raised by the Revenue in this reference. They read thus :

(2.) TAKING the second question first, it must be answered in the affirmative and in favour of the assessee, having regard to this Court's judgment in CIT vs. Smt. Godavaridevi Saraf (1978) 113 ITR 589. The question there arose in the context of the judgment of the Madras High Court referred to in the question. It was held that the concerned provision having been declared ultra vires by a High Court, the Tribunal acting anywhere in the country was obliged to respect the law laid down by the High Court, though of a different State, so long as there was no contrary decision of any other High Court on the question. It is not disputed that at the time when the Tribunal delivered the judgment out of which this reference arises, there was no decision of any other High Court on the question of the validity of S. 140A(3) of the IT Act, 1961 Accordingly, the Tribunal was justified in following the Madras High Court's judgment in A. M. Sali Maricar's case (supra).

(3.) THE first question is, accordingly, not answered.