Judicial Precedent

Tax Glossary Definition

Judicial Precedent

A judicial precedent refers to a legal principle or interpretation established by a court decision that serves as a guide for future cases involving similar issues. In taxation, such precedents help ensure uniform application and interpretation of tax laws by tax authorities and lower courts.

Example: A Supreme Court ruling on the applicability of TDS provisions becomes a binding precedent for all tax authorities and tribunals across India.

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