TMI Blog2011 (11) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. (2003 - TMI - 11786 - GUJARAT High Court) - the rectification has been done on the basis of a judgment of the Supreme Court which is binding under Article 141 of the Constitution of India. In our considered view, the judgment of the Supreme Court in Saurashtra Kutch Stock Exchange Ltd. applies a fortiori to the present case. - and concluded that notice under 154 (mistake apparent from records) can be issued on such matters. - INCOME TAX APPEAL NO.349/2011 - - - Dated:- 8-11-2011 - MR. JUSTICE SANJIV KHANNA, MR. JUSTICE R.V. EASWAR, JJ. For Appellant: Ms. Rashmi Chopra, Advocate. For Respondent : Ms.Bhakti Pasrija, Advocate R.V. EASWAR, J.: This is an appeal filed by the Revenue under Section 260A of the Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation. 4. The assessee objected to the notice under Section 154 of the Act on the ground that the issue proposed to be rectified was debatable and was not amenable to the jurisdiction conferred under Section 154 of the Act. The assessee also drew the attention of the Assessing Officer to several authorities on the point, which were in his favour. These contentions were however rejected by the Assessing Officer who passed the order under Section 154 of the Act on 1st July, 2005 reducing the deduction under Section 80HHC as per the working given in the said order. In short, the loss suffered in the export of trading goods was adjusted against the export incentives and deduction under Section 80HHC was reduced accordingly. 5. The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iew by the Assessing Officer of his own assessment order and that there was no glaring, patent or obvious mistake apparent from the record. The Tribunal also observed that merely because there was a possible loss of revenue, the provisions of Section 154 of the Act cannot be invoked. In this view of the matter, the Tribunal accepted the assessee‟s appeal and quashed the order passed by the Assessing Officer under Section 154 of the Act. In the view which the Tribunal took, it did not consider it necessary to examine the merits of the assessee‟s contentions. 7. The Revenue has filed the appeal against the aforesaid order passed by the Tribunal. The following substantial question of law is framed after hearing counsel for both t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not capable of generating any elaborate or long-drawn process of argument. In fact, no such plea appears to have been taken by the assessee. The omission to apply the judgment of the Supreme Court was a glaring and obvious mistake of law. In the circumstances, the case is covered by the ratio of the ruling of the Supreme Court in M.K.Venkatachalam, Income Tax Officer and Anr. Vs. Bombay Dyeing and Manufacturing Co. Ltd. (1958) 34 ITR 143 where it was observed that a glaring and obvious mistake by law can be corrected under Section 154. In Assistant Commissioner of Income-Tax v. Saurashtra Kutch Stock Exchange Ltd., (2008) 305 ITR 227 (SC) the Supreme Court held that where, after the Tribunal rendered its decision on appeal, a miscellaneous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... because in the present case the rectification has been done on the basis of a judgment of the Supreme Court which is binding under Article 141 of the Constitution of India. In our considered view, the judgment of the Supreme Court in Saurashtra Kutch Stock Exchange Ltd. (supra) applies a fortiori to the present case. 9. The learned standing counsel for the Income Tax Department cited the judgment of the Allahabad High Court in Commissioner of Income-Tax and Another v. Bindal Industries Ltd., (2010) 328 ITR 160 (All) and the judgment of the Punjab and Haryana High Court in Shahbad Co-operative Sugar Mills Ltd. v. Deputy Commissioner of Income-Tax, (2011) 336 ITR 222 (P H). The Allahabad High Court (supra) held that the law declared by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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