Director Of Income Tax v. M/S Western Geco International Ltd

IN THE HIGH COURT OF UTTARAKHAND AT NAINITALIncome Tax Appeal No. 43 of 2014 Director of Income Tax. ..………. Appellant Versus M/s Western Geco International Ltd. ..………. Respondent Mr. Hari Mohan Bhatia, Senior Standing Counsel for the appellant. Mr. Chetan Joshi, Advocate for the respondent. JUDGMENT Coram: Hon’ble Ramesh Ranganathan, C.J. Hon’ble Alok Singh, J. Dated: 13[th] November, 2018 RAMESH RANGANATHAN, C.J. (Oral) While fairly stating that the question of law, which arises for consideration in this appeal, is covered by a Division Bench judgment of this Court in Income Tax Appeal No. 39 of 2012 dated 20.05.2013, Mr. Hari Mohan Bhatia, learned Senior Standing Counsel for the Income Tax, would submit that, aggrieved by the said order, the Revenue has carried the matter in appeal to the Supreme Court; leave to appeal was granted by the Supreme Court; and the matter is pending in Civil Appeal No. 770 of 2014. 2. Mr. Chetan Joshi, learned counsel for the respondent-assessee, would submit that mere pendency of an appeal before the Supreme Court does not render the earlier judgment of the Division Bench inoperative; the Division Bench judgment in Income Tax Appeal No. 39 of 2012 dated 20.05.2013 would continue to bind this Court; and, in any event, the question of law, which arises for consideration in this appeal, has been answered in favour of the assessee and against the Revenue by the Supreme Court in Oil and Natural Gas Corporation Ltd. vs. Commissioner of Income Tax & another, reported in AIR 2015 SC (Supp) 1862. 3. While leave to appeal has been granted by the Supreme Court against the order of the Division Bench in Income Tax Appeal No. 39 of 2012 dated 20.05.2013, it is fairly stated by Mr. Hari Mohan Bhatia, learned Senior Standing Counsel, that, to the best of his knowledge, operation of the said judgment has not been stayed. 4. As the law declared by a coordinate Division Bench of this Court would continue to bind us, unless and until it is reversed by the Supreme Court in Civil Appeal No. 770 of 2014, we dismiss this appeal preferred by the Revenue following the judgment of the Division Bench of this Court in Income Tax Appeal No. 39 of 2012 dated 20.05.2013. G (Alok Singh, J.) (Ramesh Ranganathan, C. J.) 13.11.2018 13.11.2018