9911796707
TMI Blog2001 (4) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... e is required to consider as to whether a referable point of law on which the decision of the High Court is desirable arises in the case and once the Tribunal rejects the application under section 256(1) the issue gets further narrowed down in so far as it is necessary for the Department to demonstrate that the order passed by the Tribunal was unjustified. We start by referring to this aspect of the law principally because learned senior counsel who represents the respondents did very vehemently submit that the appellate jurisdiction may be much wider but while considering the question as to whether a reference can be directed, the High Court will concern itself only with the quality of the order that the Tribunal has passed and in doing so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be competent for the subsequent year when the Department itself abided by the position that no referable case was made out in the preceding year. Effectively this would mean, that the Department wants to put the clock back which is something that is not possible. We need to also reiterate the fact that while considering the legal position, we have heard learned senior counsel who represents the respondents, who among other things drew our attention to the fact that the issue which is the subject-matter of the present petition arose for determination in the decision reported in Lakhanpal National Ltd. v. ITO [1986] 162 ITR 240 (Guj), wherein the Division Bench of the Gujarat High Court upheld the deductibility point that arises unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of accounting which the Department does not approve of, errors have arisen and corrective action is therefore essential. The complete answer to this argument is found in the decision reported in Tuticorin Alkali Chemicals and Fertilizers Ltd. v. CIT [1997] 227 ITR 172 (SC), wherein the court has unequivocally laid down that cases are required to be decided in consonance with the principles of law which necessarily override accounting procedures. We are conscious of the fact that the Supreme Court in the decision reported in CIT v. British Paints India Ltd. [1991] 188 ITR 44, has clarified the position that a view or a decision taken in a particular assessment year does not create a precedent nor does it preclude a reversal of that view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Court had occasion to observe that the ultimate test would be the question as to whether it is demonstrated that something is manifestly wrong on the part of the assessee. In this case, Mr. Dastur was at pains to demonstrate to us that as a result of the order which virtually proceeds from assessment year to assessment year there have been occasions where the assessee has been prejudiced in so far as there has been an upward revision and, secondly, he was at pains to also demonstrate that as far as the deductibility is concerned a clear reading of section 43B would support the view that the tax paid is required to be off-set in that assessment year only. Viewed at from any angle, therefore, we see no ground on which a reference can be di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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