Tribunal to correct its approach so as to ensure such lapses do not recur
THE issue before the ITAT was regarding disallowance made on account of claim for deduction under Section 10A of the Act. This very issue was covered in favour of the Petitioner by the decision of the Tribunal for A.Y. 20052006 in the Petitioner's own case.
Although the departmental representative accepted this position before the Tribunal, the ITAT remanded the very issue to the Assessing Officer for fresh examination/determination.
The High Court was peeved with this manner of disposing the appeal and, therefore, made the following caustic comments –
"This is without in any manner even attempting to indicate why and how its earlier decision will not apply to the facts for the subsequent Assessment year. The Tribunal should not completely disregard its earlier order without some reason. This is the minimum expected of any quasi-judicial / judicial authority. If the Tribunal has failed to perform its basic judicial functions in such arbitrary manner, the approach of the Tribunal must be corrected, so as to ensure that such lapses do not occur again."
Not that the CESTAT does not get the stick. It had its share of embarrassment in Sunbel Alloys Co. of India Ltd. 2015-TIOL-234-HC-MUM-CX.