An order was passed u/s 201 for the assessment year 2014 -15 against the assessee following the order of the Dispute Resolution panel for the assessment year 2010 -11. The assessee filed writ before the High Court and contended that earlier order was set aside and reversed by the Appellate Tribunal in Gemological Institute of America Inc v .Add .CIT (IT ) (2021) 189 ITD 254/ 88 ITR 505 ( Mum)( Trib) . The Tribunal held that the amount paid to GIA was not taxable . Allowing the petition the court held that the order of the Tribunal is binding on the Assessing Officer unless stayed by a competent Court . Accordingly the order was quashed . Followed UOI v. Kamlakashi Finance Corporation Ltd ( 1992) Supp. (1) SCC 443 (AY. 2014 -15 )
GIA Laboratory Pvt Ltd v. ITO ( 2023) 450 ITR 7( Bom)( HC).Editorial: Order in Gemological Institute of America CA Inc v. Add.CIT ( IT) ( 2021)88 ITR 505 ( Mum)( Trib), affirmed .
S. 201 : Deduction at source – Failure to deduct or pay – Earlier order was set aside by the Tribunal -Department appeal is pending for hearing – Order of Tribunal not stayed – Order holding that the assessee in default for latter year following the order of earlier year was quashed – Order of Tribunal is binding on the Assessing Officer – Order treating the assessee in default was quashed . [S. 260A, Art , 226 ]