1999 (7) TMI 51 - HC - Income Tax

Appeal To Appellate Tribunal, Writ, Powers Of Tribunal, Power Of Rectification, Alternate Remedy, Order Of Tribunal

Summary

Issues:
1. Tribunal's power to recall its order in its entirety under section 254(2).
2. Interpretation of section 260A regarding appealability of Tribunal's orders.
3. Rectification of Tribunal's order and impact on assessment proceedings.

Issue 1: Tribunal's power to recall its order under section 254(2):
The High Court considered the Tribunal's recall of its order as an error, emphasizing that the Tribunal cannot completely recall its order under section 254(2) and re-decide the matter with new arguments. The judge noted that the sub-section refers to amendment or rectification, not total recall. The Court highlighted that even if the Tribunal has the power to recall, it should not engage in a total recall followed by a different decision after lengthy arguments, as it would not align with the purpose of the provision.

Issue 2: Interpretation of section 260A regarding appealability of Tribunal's orders:
The Court analyzed the appealability under section 260A, stating that not every order passed by the Tribunal is appealable. The judge explained that for an order to be appealable, it must substantially affect the parties' rights or dispose of an important point in controversy. The Court clarified that the impugned order, passed in a miscellaneous application for rectification, was not appealable under section 260A. The judge further highlighted that even if appealable, the order being without jurisdiction, the writ petition should be entertained as an exception to expedite the assessment proceedings.

Issue 3: Rectification of Tribunal's order and impact on assessment proceedings:
The High Court found the Tribunal's recall of the order to rectify mistakes in the reasoning portion as an error. The judge emphasized that the ordering portion directing the block assessment was correct and needed no rectification. The Court stated that the Tribunal, while acting in good faith to give effect to the earlier judgment, erred in attempting to rectify reasoning that did not affect the final order's correctness. The judge allowed the writ application, canceling the impugned order and reinstating the ordering portion of the original order to guide the Department in conducting block assessments and separate regular assessments correctly.

In conclusion, the High Court's judgment addressed the Tribunal's power to recall orders, the appealability of Tribunal's orders under section 260A, and the rectification of orders impacting assessment proceedings. The Court emphasized the importance of adhering to legal provisions and ensuring that rectifications are made within the scope of the law to avoid unnecessary delays and errors in the judicial process.