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2020 (2) TMI 1445 - AT - Income TaxRectification of mistake u/s 254 - allowability of prior period expenses - Tribunal has not dealt with the propositions canvassed by the assessee as well as the ratio laid down in the decision relied upon - HELD THAT:- As rightly observed by assessee, the Tribunal did not follow the decision of the Hon'ble Jurisdictional High Court in case of Nagri Mills co. Ltd.[1957 (9) TMI 30 - BOMBAY HIGH COURT ] on the reasoning that the said decision has been treated as overruled by the Hon’ble Allahabad High Court in another decision. We fully agree with the submissions of leaned Sr. Counsel for the assessee that the decision of the Hon'ble Jurisdictional High Court will get precedence over the decision of the non Jurisdictional High Court on similar issue, hence, would be binding on all subordinate Courts and Tribunal within the territorial jurisdiction of the Jurisdictional High Court. After perusing the appeal order passed by the Tribunal and all other facts and materials available on record, we are of the view that while deciding the issue relating to allowability of prior period expenses, the Tribunal has not dealt with various propositions canvassed on behalf of the assessee, as well as, has not appreciated / taken note of the ratio laid down in various judicial precedents cited by the assessee. Thus, non–consideration of various propositions canvassed by the assessee as well as case laws cited including the decision of the Hon'ble Jurisdictional High Court, constitute mistake apparent on the face of record, hence, comes within the purview of section 254(2) - Misc. application allowed.
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