High Court dismissed the appeal of the revenue on the ground that the department has not filed an appeal against the Judgement of special Bench in Narang Overseas Pvt .Ltd v. ACIT ( 2008) 111 ITD 1 (Mum) (SB) (Trib) . On appeal by the revenue allowing the appeal, the Court held that , this was not the correct approach of the High Court : though one authority had followed its own decision in another case and that matter in appeal had been dismissed on technical grounds still the High Court had to decide the question on the merits.
CIT v. Goodwill Theatres P. Ltd. (2018) 400 ITR 566 (SC) Editorial : Order in CIT v. Goodwill Theatres Pvt. Ltd. (2016) 386 ITR 294 / 241 Taxman 352 (Bom.)(HC) was set aside
S.260A: Appeal -High Court- Mesne profit – Capital or revenue -Dismissal of the appeal on the ground that the department has not filed an appeal against the Judgement of special Bench was held to be not justified – High Court was directed to hear the appeal on merits [ S.4 ]