1999 (11) TMI 33 - HC - Income Tax

Summary

Issues Involved: Jurisdiction of the court, Rectification of order by Tribunal under section 254(2) of the Income-tax Act, 1961.

Jurisdiction of the Court:
The High Court entertained a writ petition challenging an order of the Income-tax Appellate Tribunal (ITAT) based in Delhi. The petitioner argued that since the impugned order was passed in Delhi, the court had territorial jurisdiction. The court rejected the Revenue's objections citing previous decisions and held that it had jurisdiction to entertain the petition.

Rectification of Order by Tribunal under Section 254(2) of the Income-tax Act:
The Tribunal had recalled its order rejecting a reference application filed by the Revenue under section 254(2) of the Income-tax Act, 1961. The Tribunal cited a circular that had been withdrawn as the reason for the mistake apparent from the record. However, the High Court held that the Tribunal did not have the power to rectify an order passed under section 256(1) of the Act using section 254(2). The court found the impugned order to be illegal and invalid, setting it aside and allowing the writ petition.

Separate Judgment by Judges:
No separate judgment was delivered by the judges in this case.