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TMI Blog2012 (12) TMI 864X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO and an order passed by the Tribunal cannot be amended by the CIT(A) or the AO. In any event, neither the AO nor the CIT(A) can sit in judgment over the decision of the Tribunal and they cannot correct an order of the Tribunal. In the present case, the Revenue did not challenge the order of the Tribunal. The matter should have ended by the AO implementing the order of the Tribunal. In fact, upon remand, the AO erroneously did not implement the order of the Tribunal. The AO, ultimately, did so only when the CIT(A) by the said order dated 19th March, 1997 directed him to do so, stating that the AO was bound by the judgment of the Tribunal. The Revenue did not challenge this Order of the CIT(A) either. The matter regarding the claim for d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER 1. This is an appeal under Section 260A of the Income Tax Act 1961, against an order of the Income Tax Appellate Tribunal (ITAT) dated 23rd March, 2011 in ITA No. 110/PNJ/2000 pertaining to the Assessment Year 1983-84, allowing the respondent's appeal against the order of the Commissioner of Income Tax (Appeals). 2. (A) The question that falls for consideration is whether an Assessing Officer is entitled to invoke Section 154 to correct an assessment order which gives effect to the orders of the appellate authorities based on his opinion that the orders of the CIT (Appeals) and the Tribunal are erroneous and contrary to law, including a subsequent judgment of the Supreme Court. We have answered the question in the negative. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sary entries in the books of accounts in the year in which the relevant notification was issued, entitling the respondent to the benefit in that regard. 4. (A) The Assessing Officer, contrary to the directions of the Tribunal, determined the cost by excluding the customs duty, holding that the same would be contrary to the decisions of the Supreme Court in Asstt. Collector of Central Excise v. Dunlop India Ltd. [1985] 154 ITR 172 and CIT v. V.D. Swami Co. (P.) Ltd. [1991] 188 ITR 325 (SC). (B) The Commissioner of Income Tax (Appeals) by an order dated 19th March, 1997 rightly held that the Assessing Officer was bound by the decision of the Tribunal, till it was held to be incorrect in appropriate proceedings. He rightly held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dealt with the matter on merits, effectively set aside the order of the Tribunal and considered himself free to criticize the Tribunal in the following terms : "Since the Supreme Court's decision quoted above was pronounced after the ITAT issued its directions, the ITAT had no benefit of the decision of the Supreme Court and accordingly directed to grant depreciation on the vessel by including the custom duty payable while determining the actual cost even though the ITAT was aware that such custom duty was not payable by a subsequent notification by the Govt. of India in 1987. As the decision of the Supreme Court is correct interpretation of law any action taken or directed contrary to such finding by the Supreme court constitute a mistak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plain reading of sub-section (1)(1A) of Section 154, makes it clear that the authority passing the order may amend the order. Thus, for instance, an order passed by the CIT(A) cannot be amended by the AO and an order passed by the Tribunal cannot be amended by the CIT(A) or the AO. In any event, neither the AO nor the CIT(A) can sit in judgment over the decision of the Tribunal and they cannot correct an order of the Tribunal. In the present case, the Revenue did not challenge the order of the Tribunal. The matter should have ended by the AO implementing the order of the Tribunal. In fact, upon remand, the AO erroneously did not implement the order of the Tribunal. The AO, ultimately, did so only when the CIT(A) by the said order dated 19th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO held : "As the decision of the Supreme Court is correct interpretation of law any action taken or directed contrary to such finding by the Supreme Court constitute a mistake apparent from the record and the same is rectifiable u/s 154." It is not for the AO or for that matter even for this Court to consider whether a decision of the Supreme Court is a correct interpretation of the law or not. Decisions of higher Courts are bound to be followed, irrespective of the personal views of the lower Courts or authorities. 13. Mr. Dessai relied upon the judgments of the Supreme Court referred to in the question as raised in the appeal which is set out earlier. 14. The judgment of the Supreme Court in S.A.L. Narayana Row, CIT v. Model Mills N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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