1990 (1) TMI 310

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....s. 256(1) of the IT Act, 1961 to this Court : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that non-allowance of carry forward of the assessed loss was a mistake apparent from the record within the meaning of s. 154 of the IT Act ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified i....

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....assessee on 2nd August, 1977. The ITO, therefore, was of the opinion that the return was not filed in time and hence the loss could not have been carried forward to the subsequent year. He rejected the petition of the assessee under s. 154 of the Act." 3. On appeal the CIT(A) accepted the contention of the assessee and held that "the ITOs non-carry forward of loss is a mistake apparent from the....

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....ry forward of loss. The Honble Calcutta High Court in Presidency Medical Centre vs. CIT (1977) 108 ITR 838 (Cal) decided the issue in favour of the assessee. The decision of the Calcutta High Court is binding and the law pronounced by the Honble High Court is applicable to all the cases unless the same is reversed by the superior Court. Therefore, the officers working under the jurisdiction of the....

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....d to apply the principles of law laid down by the Calcutta High Court. Since the point of law had already been decided by the Calcutta High Court the ITO had to follow the law laid down by this Court. If that was not done then an obvious and glaring mistake of law had been committed. Such mistake can be rectified under s. 154 of the Act. 6. Therefore, question No. 1 is answered in the affirmati....