Demystifying Law of Precedents & Substantial Question of Law - Course

Course Duration:
120 minutes

Episode Background:
The Principal of Stare Decisis outlines that the decision taken by a higher court is binding on the lower court, and at the same time stand as a precedent to the lower court judgment which cannot be distorted by the lower court; which essentially means to stand by the decided matters. In India, this is commonly known as the “Concept of Precedents”. In this context, Article 141 of the Constitution of India stipulates that the law declared by the Supreme Court (SC) shall be binding on all Courts within the territory of India.

Another such concept, though not defined, the expression ‘substantial question of law’ has through a series of judicial pronouncements acquired a certain definite connotation. Under section 260A of the Income-tax Act, 1961, an appeal shall lie before the High Court against an order passed by the Tax Tribunal only if the Court is satisfied that the case involves a ‘substantial question of law’. However, a pertinent question that many tax & law practitioners are always vexed with is, “What really constitutes a ‘substantial question of law’? What is covered within the ambit of this phrase?”

What shall the episode cover?
To decode all this and much more, Taxsutra is delighted to bring to you a special episode with Senior Advocate Vikram Huilgol & Advocate Sandeep Huilgol on the theme of “Demystifying Law of Precedents & Substantial Question of Law”

Key Highlights:

I.              Regarding Law of Precedents:

1.    Overview of concept of law of precedents and Stare decisis (stand by decided cases).

2.    Need for binding effect of precedents.

3.    Relevant Constitutional provisions relating to law of predecents.

4.    What part of the judgment is binding?

5.    Concepts of ratio decidendi, obiter dicta, per incuriam and sub silentio

6.    Whether dissenting opinions are binding?

7.    Dismissal of SLPs in limine – whether binding?

8.    Conflicting judgments of Courts – how to reconcile?

9.    Reference to Larger Bench – when required?

10.  Overruling judgments & Binding effect of High Court judgments outside its territorial jurisdiction.

II.            Substantial Question of Law

1. Statistics on the number of appeals filed under S.260A before the Karnataka HC over the last few years in order to demonstrate the number of appeals being filed.
2. CBDT's Circular No.3/2018, as amended in 2019. Extent and scope of the self-imposed restrictions on filing of appeals by the Department vide this Circular.
3. Steps that may be taken by assessees in cases where appeals are filed under S.260A in order to reduce the period of pendency of the said appeals.
4. Proposed amendment to the IT Act by way of insertion of S.158AB - Scope of proposed amendment, and potential pitfalls. 
5. Detailed discussion of the above topics and related issues.