| Case ID |
1072137c-783c-4401-8db8-323358c8a09e |
| Body |
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| Case Number |
M.C.C. No. 104 of 1989 |
| Decision Date |
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| Hearing Date |
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| Decision |
The Madhya Pradesh High Court ruled that where a Tribunal has passed an order following a decision of the High Court in a previous case, an application under section 256(2) cannot be entertained. The Tribunal had previously determined that the amount paid by the State Bank of Indore to IDBI as rediscounting charges was deductible for income tax purposes for the assessment years 1982-83 to 1983-84. The Court emphasized that the issues raised were already settled in favor of the assessee in earlier cases. Therefore, the applications were dismissed without costs. |
| Summary |
In the case involving the Commissioner of Income Tax v. State Bank of Indore, the Madhya Pradesh High Court addressed the applicability of section 256 of the Income-tax Act, 1961. The court concluded that when a Tribunal decides a case based on a previous High Court ruling, further reference under section 256(2) is not permissible. The Tribunal had previously ruled that the rediscounting charges paid by the State Bank of Indore to the IDBI were deductible, reinforcing the High Court's earlier decisions. This case illustrates the importance of precedent in tax law and the limits of appeal processes when issues have already been adjudicated. The decision underlines the efficiency of the judicial process in upholding established rulings, thereby reducing unnecessary litigation. This ruling is significant for tax practitioners and financial institutions, ensuring clarity in the treatment of rediscounting charges under the Interest Tax Act. |
| Court |
Madhya Pradesh High Court
|
| Entities Involved |
Income-tax Department,
State Bank of Indore
|
| Judges |
V.D. Gyani,
V.S. Kokje
|
| Lawyers |
V.S. Samvatsar,
J.W. Mahajan
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
State Bank of Indore
|
| Citations |
1992 SLD 1385 = (1992) 194 ITR 124
|
| Other Citations |
CIT v. State Bank of Indore [M.C.C. No. 104 of 1989],
CIT v. State Bank of Indore [1988] 172 ITR 24 (MP),
CWT v. Smt. Usha Devi [1990] 183 ITR 75 (MP)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
256
|