Allowing the petition the Court held that under article\u00a0215\u00a0of the Constitution, every High Court shall be a court of record and shall have all the powers of such a court including the power to punish for contempt of itself. Under article\u00a0226, it has a plenary power to issue orders or writs for the enforcement of the fundamental rights and for any other purpose to any person or authority, including in appropriate cases any Government, within its territorial jurisdiction. Under article\u00a0227\u00a0it has jurisdiction over all courts and Tribunals throughout the territories in relation to which it exercises jurisdiction. The law declared by the highest court in the State is binding on authorities or tribunals under its superintendence, and they cannot ignore it either in initiating a proceeding or deciding on the rights involved in such a proceeding. Any order contrary to or disregarding the direction of the High Court cannot be sustained as it renders the order bad for want of jurisdiction. Accordingly the Court \u00a0\u00a0directed the Assessing Officer to undertake the exercise of finding a fair market value of share as contemplated in the Explanation to section\u00a056\u00a0of the Act. However, the exercise had not been completed. Hence, the assessment order was not valid. Followed, East India Commercial Co Ltd v. Collector of Customs\u00a0 (1963) 3 SCR 338\/ AIR 1962 SC 1893. \u201c We, therefore, hold that the law declared by\u00a0 the highest court of State is binding on the authorities or Tribunals under its superintendence, and that they cannot ignore it either in initiating proceedings or deciding on the rights involved in such proceedings. If that be so, the notice issued by the authority signifying the launching of proceedings contrary to the law laid down by the High Court would be invalid\u00a0 and the proceedings themselves would be without jurisdiction \u201c\u00a0 (AY.2014-15<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 143(3) : Assessment-Income-Tax Authorities-High Court-Binding precedent-Decision of High Court is binding on Income-Tax Authorities-Order of Assessment ignoring direction of High Court is not valid [S. 56(2)(viib), Art. 215, 226, 227] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-46257","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-c25","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/46257","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=46257"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/46257\/revisions"}],"predecessor-version":[{"id":46258,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/46257\/revisions\/46258"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=46257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=46257"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=46257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}