Sec. 154 rectification can be invoked in case order of assessment inconsistent with a binding precedent.

Hindustan Lever Limited Vs JCIT (Calcutta High Court)

Conclusion: Where an assessment order not in tuned with the law laid down by a binding precedent, it would amount to an error apparent on the record for the purpose of invoking rectification under section 154.

Held: In the instant case, department invoked provisions of section 154 in respect of the relevant assessment years on the basis of ratio laid down in 1994 Volume 206 Income Tax Report page 367 (Cal) (Appeejay Pvt. Ltd. v. Commissioner of Income-Tax) Please become a Premium member. If you are already a Premium member, login here to access the full content.