In the case of Luxora Infrastructure Pvt Ltd [TS-842-ITAT-2022(Mum)], the ITAT explains that “Unlike the decisions of the Hon’ble jurisdictional High Court, which bind us in letter and in spirit on account of the binding force of law, the decisions of the Hon’ble non-jurisdictional High Court are followed by the lower authorities, only in the absence of benefit of guidance by the Hon’ble jurisdictional High Court on that issue, on account of the persuasive effect of these decisions and on account of the concept of judicial propriety-factors which are inherently subjective in nature”.
The ITAT observed that the applicability of non-jurisdictional HC ruling is never absolute and is limited only on the issues on which there is no guidance of the jurisdictional HC.