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2015 (1) TMI 1167 - CALCUTTA HIGH COURTRectification of mistake - Scope of Section 154 - Whether power of CCIT u/s 154 can only be exercised for rectification of a mistakes which are apparent on record and not when an elaborate reasoning is to be provided to arrive at the finding that there appears to be a mistake apparent on record? - petitioner is substantially financed by the State of Sikkim and entitled to an exemption under Section 10 (23C) (iiiab) of the Act - Held that:- The assessment order, passed on the return file in pursuance of the notice under Section 148 of the Act, was based on the fact that the petitioner is not entitled to an exemption under the said Section. The Appellate Tribunal reversed the said order with categorical finding that the petitioner is substantially financed by the Government of Sikkim and is, therefore, entitled to an exemption under Section 10 (23C) (iiiab) of the said Act. The CCIT is bound by the decision of the Appellate Tribunal which is admittedly a superior forum. The hierarchical system of dispensation of justice, which exists in our country, requires a strict adherence and respect to avoid any abuse or misuse of the power and conflict in views. The authority of the Court standing on a lower pedestal is bound by the decision of the higher authority or the Court and it is not open to disregard the decision. It does not require any debate on the proposition of law that the principle of res judicata cannot be applied in a matter of taxation because each year’s assessment is final in that year and does not have any bearing at the time of determination of the tax for a subsequent period or other period as held in Installment Supply (P) Ltd. & Another (1961 (5) TMI 53 - SUPREME COURT OF INDIA). It is not a case of the petitioner that the principle of res judicata is applicable in the present case. The CCIT has wrongfully invoked the jurisdiction under Section 154 of the Act by recording an elaborate reasoning in the garb of the mistake apparent from the record and has, in fact, percolate the sense of change of opinion. Furthermore, the CCIT cannot sit as an Appellate Authority over the decision of the Appellate Tribunal. The CCIT is bound by the decision of the Appellate Tribunal which is a higher forum and cannot take a contrary view to what has been taken therein. This Court, therefore, finds that the order impugned suffers from illegality and/or infirmity and cannot be allowed to stand. Accordingly, the order dated 17th January, 2013 is hereby quashed and set aside. - Decided in favour of assessee.
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