1977 (9) TMI 24

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....ssessee submitted a return of income for the assessment year 1968-69 declaring therein income of Rs. 29,038 on August 30, 1969. Having regard to the provision of section 140A(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), she was required to make self-assessment by September 29, 1969. The amount of tax payable by way of assessment was Rs. 4,342. The assessee did not pay the said tax till the Income-tax Officer made assessment for the assessment year 1968-69 by his order dated August 31, 1971. As no tax was paid by way of self-assessment, an opportunity to show cause why a penalty should not be imposed under section 140A(3) was given to the assessee. She, however, did not offer any explanation. By his order dated Octo....

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....order of penalty, it impliedly held that section 140A(3) was unconstitutional as being violative of the provisions of article 19(1)(f) of the Constitution of India. His submission was that an authority, which is a creature of a statute, has no jurisdiction to go into the validity of the provisions of the statute under which it is constituted. He urged that it may be that so far as the Income-tax Tribunal situate in the State of Madras is concerned, the decision of the Madras High Court in the case of A. M. Sali Maricar [1973] 90 ITR 116 may be treated as an authoritative precedent, but so far as the Income-tax Tribunal at Bombay is concerned, it is merely a persuasive precedent and unless, after following the said decision the Tribunal hold....

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....ct violation of it. If a Tribunal can do so, all the subordinate courts can equally do so, for there is no specific provision, just like in the case of the Supreme Court making the law declared by the High Court binding on subordinate courts. It is implicit in the power of supervision conferred on a superior Tribunal that all the Tribunals subject to its supervision should conform to the law laid down by it. Such obedience would also be conducive to their smooth working ; otherwise, there would be confusion in the administration of law and respect for law would irretrievably suffer. In view of this clear pronouncement of the Supreme Court, it is not controverted by Mr. Joshi on behalf, of the revenue that an Income-tax Tribunal sitting a....