SONO MEDICAL CENTRE (P) LTD. Vs. CIT

JUDGEMENT

(1.) THIS is a reference made at the instance of the assessee under section 256(1) of the Income Tax Act by the Tribunal to answer the following questions of law by this Court: - '1. Whether on the facts and circumstances of the case, the Tribunal has erred in not allowing set off of brought forward depreciation for assessment year 1988 -89 claimed at Rs. 1,73,417 for working of book profit under section 115(J) of the Income Tax Act, 1961?

(2.) WHETHER on the facts and circumstances of the case the Tribunal has rightly held that as per provision of clause (iv) of the explanation to section 115(J)(1A) the brought forward depreciation of Rs. 1,73,417 was not allowable while computing the book profit under section 115(J) since there was profit of Rs. 65,562 before depreciation for A.Y. 1988 -89?

(3.) IN our opinion once the law is settled by the authoritative pronouncement of the Supreme Court, nothing remains for this court to decide except to follow the law laid down by the highest court in the country by virtue of article 141 of the Constitution of India. It is for this reason we do not wish to burden our judgment by narrating the entire facts and having bearing over the question referred to this court for answer.