Saturday, 28 October 2017

HC : Condemns Revenue's rejection of some revised returns while passing re-assessment order, remands matter

HC sets aside re-assessment order passed by Assessing Authority (AA) accepting some monthly revised returns while rejecting some on ground of non-mention of additional tax liability and proof of payment thereof, however, refrains from deciding matter on merits; Criticises AA’s pedantic approach in adopting Division Bench’s order of this Court in Jones Lang Lasalle Property Consultant India (P) Ltd. wherein it was held that, any ‘additional tax liability’ would mean ‘additional net tax liability’ and that, there is no reason to not adjust input credit against additional tax liability; Remarks, judgments of Constitutional Courts have to be discussed in detail and Authorities should record their own reasons it they take a different view, else it would be utter disregard of their (i.e. Constitutional Court’s) judgments and may drag Authorities in realm of judicial indiscipline and consequent disciplinary action; Observes, “judgments of the Constitutional Courts can be altered, modified or reversed only by the superior Constitutional Courts of larger strength or hierarchy, but they are not allowed to be casually referred and forgotten…..Otherwise the very purpose of maintaining the hierarchical judicial discipline will be lost”; Consequently, stating that, Revenue has not fully discussed / understood ratio of said judgment, remands matter with a direction to pass fresh orders for each month / tax period after accepting all revised returns for re-assessed period  : Karnataka HC

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