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2004 (5) TMI 11 - HC - Income TaxPowers of tribunal under section 254 for rectification - By impugned order, the Tribunal allowed the application made by the assessee u/s 254(2) seeking rectification in the main appellate order - Mere perusal of the impugned order of the Tribunal quoted supra would indicate that the rectification was done or was required to be done on the strength of the law laid down by the Supreme Court in the case of Kerala State Industrial Development Corporation Ltd. v. CIT. It is in this case, their Lordships have explained the manner in which the tax is to be calculated on the interest earned by the assessee. So the rectification had to be done to make the direction of the Tribunal to the taxing authorities to follow the law laid down by the apex court. Indeed, the law laid down by the Supreme Court being binding on all courts/Tribunals in our country by virtue of article 141 of the Constitution of India, the rectification had become necessary so as to make the judicial orders in accord with the law explained by the Supreme Court. - We, therefore, do not find any error of law committed by the Tribunal in invoking their powers of rectification u/s 254
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