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 :) ITAT also lifts embargo!!!

Hon'ble ITAT , Kolkata Bench in the case of Surendra Commercial & Exim (P) Ltd., ITA No.916/Kol/2011, order pronounced  on 15 February, 2013, has followed  Merilyn Shipping , Spl. Bench Verdict post- interim suspension by the Hon'ble A.P High Court.

For full text visit:
http://www.subashagarwal.blogspot.in/2013/02/kolkata-tribunal-also-lifts-embargo-on.html

Full Bench judgment of the Patna High Court in CWT v. Jagdish Prasad Choudhary [1995] 211 ITR 472 has been impliedly reversed by the Supreme Court in SMT. AZIZUNNISA BEGAM'S CASE. For detailed analysis pls. visit:
www.subashagarwal.blogspot.in

Thanks Anumita!!!

CA Tushar's view is correct. When  taxable income is computed  as per normal provisions of the Act,  application of income is immaterial. Income is taxed at d point of accrual or at d point of receipt as per d method of accounting employed.

   :) After interim suspension of the Special bench verdict in Merilyn Shipping by the Hon'ble A.P High Court, CBDT had sent a written communication to all the CIT(A)s in the country enclosing a copy of the Andhra Pradesh High Court's order of 'interim suspension' informing them that the 'perverse' order of Special Bench has been stayed on the issue. After that CIT(A)s were refusing to follow Merilyn Shipping. After the article written by me was hosted in ITAT Online, a Ld. CIT(A) at Kolkata has been pleased to follow the judgment of the Hon'ble Calcutta High Court in Pijush Kanti Chaudhury vs. State of West Bengal referred to by me in the Article, holding that the 'stay' of an order does not destroy its binding impact.

•   For the Full text of the order of the Ld. CIT(A), Please visit-
www.subashagarwal.blogspot.in

Due to huge pendency of cases, it takes a long time for High Courts to decide appeals after the appeals are admitted. In most cases, it takes 5-10 yrs. Do u mean ITAT & CIT(A)s will block the cases for such a long period till the issue is decided by the Hon'ble A.P High Court . I don't think so. There will only be two options left with them- either to follow or not to take cognizance of the Spl. Bench verdict.  I think taking the later course will not be justifiable when the issue has been interpreted by the highest court of the country and the Hon'ble High Court of Calcutta.
Why to doubt the wisdom of CIT(A)s  &  Hon'ble ITAT ? From my experience I can say, they pass justifiable orders when proper authorities are brought to their notice barring some exceptions.

Thanks Anumita!

Anumita, most probably u have not gone through my article on d issue available on my blog whose link is given below my initial post. My view is based on the interpretation given by d honble Apex Court n d honble high court of Calcutta under similar situation.

In my view Interim suspension order passed by the Hon'ble A.P High in the case of Merilyn Shipping (spl. bench order of Visakhapatnam bench) does not affect the binding value of the special bench order. The same  continues to hold the field and may still be relied upon by the CIT(A)s and ITAT to give relief to the assessees on the paid /payable issue in respect of sec 40(a)(ia). To know why, pls visit-
www.subashagarwal.blogspot.in