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Issues involved: Challenge to order of Income-tax Appellate Tribunal recalling earlier order and fixing matter for rehearing.
Summary: The writ petition was filed by the Revenue challenging the order of the Income-tax Appellate Tribunal recalling an earlier order and fixing the matter for rehearing. The case involved the assessee encashing high denomination currency notes and providing explanations for their source, which were found to be unsatisfactory by the Income-tax Officer. The Commissioner of Income-tax (Appeals) later held in favor of the assessee, leading to a further appeal by the Revenue before the Income-tax Appellate Tribunal. The Tribunal allowed the Revenue's appeal, stating that the assessee failed to provide sufficient evidence to explain the source of the funds, leading to the inclusion of the amount in the total income. Subsequently, the Tribunal passed an order recalling the earlier decision, which was challenged in the present writ petition. The High Court observed that the Tribunal had erred in recalling its earlier order and exceeding its jurisdiction by sitting in appeal over its own decision. The Court emphasized that the Tribunal's power to amend an order under section 254(2) of the Income-tax Act does not extend to reviewing or overturning its own decision. The Court held that the Tribunal's action in recalling the order was unsustainable in law and set aside the impugned order dated November 11, 1985, passed by the Tribunal in the matter. Therefore, the High Court allowed the application filed by the assessee, ruling in favor of the petitioner and setting aside the Tribunal's order. No costs were awarded in the case.
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