9911796707
TMI Blog1989 (11) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... correct in holding that, in view of the decision of the M. P. High Court dated 12th December, 1979, there was a mistake apparent from the record in its order dated 10th January, 1979, and, on that account, rectifying its order ?" The relevant facts are these : The assessee is Sagar Co-operative Central Bank Ltd. The assessment year involved is 1974-75. The assessee had earned commission income amounting to Rs. 55,134 from the M. P. Electricity Board for collection of electricity bills. It claimed that this income was exempt. The Income-tax Officer disallowed the claim and brought this amount to tax. A copy of the assessment order of the Income-tax Officer is annexure "C". In the appeal before the Appellate Assistant Commissioner, it wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 80P(2)(a)(i) of the Act. A copy of the order of the High Court has been marked as annexure "D" to the statement of the case. Against the aforesaid judgment of this High Court, an appeal is pending before the Supreme Court. As a result of the decision of this court with regard to an earlier year, the Department moved an application under section 254(2) of the Act for rectification of the order of the Tribunal in the light of the decision of the High Court. A copy of the application has been marked as annexure "E" to the statement of the case and forming part thereof. The Tribunal allowed this application and rectified its order holding that there was a mistake apparent from the record. It was pointed out that the special leave pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious years, had come to the same conclusion in respect of the exemption in the assessment year 1974-75 with regard to the scope of section 80P(2)(a)(i). Merely because the High Court took a view contrary to that of the Tribunal with regard to an earlier year after the passing of the appellate order in respect of the assessment year 1974-75, it could not be said that there was any error apparent from the record in the appellate order of the Tribunal for the year in question. Especially because the decision of this court was already the subject-matter of an appeal before the Supreme Court and the Supreme Court may as well take a view different from that taken by this court and may reverse the decision of this court. In any event, it cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which had been overruled by the High Court. In the Calcutta case, it has been observed that "strangely enough, the Appellate Assistant Commissioner, without considering the said decision of this court, followed the order of the Tribunal for the earlier assessment year where the Tribunal took a contrary view" and furthermore, at page 366, it has been observed : "The validity of the action of the Income-tax Officer must be judged from the facts as they were at the time when the action was taken. It is not the case of the assessee that, at the material time, there was any conflict of judicial opinion on the relevant rule between different High Courts or the matter was pending before the Supreme Court to be resolved and settled by the Supreme C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct to this court's jurisdiction, was concerned and that, therefore, there was an error apparent from the record. It would bear repetition to say that in the instant case, on the date when the Tribunal had passed the appellate order, this court's decision was not there. In the second place, the decision of this court was and is already pending before the Supreme Court to be tested. Therefore, it cannot be said that the point is not debatable. It will, therefore, be seen that it involves long-drawn process of reasoning to establish that there was an error apparent in the Tribunal's appellate order for the assessment year 1974-75. In the result, therefore, the question referred to this court must be answered against the Revenue and in favo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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