Not Following Juridictional High Court Decision : Contemt of Court

Bombay High Court in Garware polyster held that Failure to follow High Court’s order is contempt of court. The AO passed an assessment order in which he declined to follow the judgement of the Bombay High Court. On a Writ Petition filed by the assessee, the High Court has taken the view that as the said judgement in Pee Vee Textiles is not stayed, “the refusal to follow and implement the judgment of this Court by Mr.Dubey in our considered view prima facie amounts to contempt of this Court”. The Court directed issue of a show-cause notice to the AO as to why action under the Contempt of Courts Act should not be initiated against him.