1976 (6) TMI 39

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.... was completed at Rs. 1,44,575 and deduction under s. 80-E was allowed on this figure. The ITO had considered thereby that steel re-rolling would be an item coming in the Fifth schedule. 2. Subsequently, the ITO has been advised that re-rolling will not come under the Fifth schedule. So he reopened the assessment and withdrew the 80-E deduction as well as the development rebate allowed at a hig....

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.... income at Rs. 1,50,223, he set off the loss of Rs. 84,311 and arrived at a taxable income of Rs. 65,912. The deduction under s. 80-E was allowed on the net figure of Rs. 65,912. 4. The assessee thereupon wrote a letter to the ITO on 23rd march, 1973. According to this letter, the assessee would be entitled to the 80-E deduction worked out on Rs. 1,50,223. For this purpose, the assessee relied ....

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....n of s. 80-E which is in favour of the assessee. The decision of the Kerala High Court being binding on the ITO while giving effect to the Tribunal's order, he should have followed the principle laid down by the Kerala High court and allowed 80-E deduction on the amount before set off of the loss. In as much as he hand not done so, especially when the assessee had drawn his attention to the decisi....