Harping on the Principles of judicial discipline the High Court in 2022] 446 ITR 734 (Telangana) held that the orders of the higher appellate authorities should be followed unreversedly by the subordinate authorities. Unless there is a stay, the order or decision of the jurisdictional Tribunal is binding on all Income-tax authorities within its jurisdiction.
In this case the AO disallowed depreciation on goodwill despite a favourable order of the ITAT in taxpayers own case by stating that the Department has not accepted the said decision.
Undue harassment to the assessee and chaos in administration of the tax laws
