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August 2015

Appeal to High Court – Competency of appeal – Rule of consistency – Sections 92B and 260A – A. Y. 2007-08 – Decision of Tribunal on identical issues relating to section 92B – No appeals from decisions – Presumption that the decision has been accepted – Appeal on similar issue to High Court not maintainable

By K. B. Bhujle Advocate
Reading Time 1 mins
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CIT vs. Tata Autocomp Systems Ltd.; 374 ITR 516 (Bom):

The Revenue had filed an appeal before the High Court against the order of the Tribunal relating to section 92B. Appeal was not preferred against the decisions of the Tribunal on identical issue in other cases:

The Bombay High Court dismissed the appeal filed by the Revenue and held as under:

“i) T he order of the Tribunal, inter alia, had followed the decisions of the Bombay Bench of the Tribunal to reach the conclusion that the arm’s length price in the case of loans advanced to associate enterprises would be determined on the basis of the rate of interest being charged in the country where the loan is received/ consumed.

ii) T he Revenue had not preferred any appeal against those decisions of the Tribunal on the above issue. No reason had been shown as to why the Revenue sought to take a different view in the present case from that taken in those decisions of the Tribunal. The Revenue having not filed any appeal against those decisions, had in fact accepted the decisions of the Tribunal. The appeal was not maintainable.”

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