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Issues involved: Whether the Tribunal has the power to review and recall its order passed under section 256(1) of the Income-tax Act, 1961.
Summary: The High Court of Allahabad considered the question of whether the Tribunal has the authority to review and recall its order passed under section 256(1) of the Income-tax Act, 1961. The petitioner argued that there is no provision in the Act allowing the Tribunal to review or recall such orders. On the other hand, the respondents contended that section 254 of the Act provides the Tribunal with the inherent power to amend any order to rectify mistakes apparent from the record. The Court examined the provisions of section 254(1) and (2) of the Act, emphasizing that the power to rectify mistakes is limited to orders passed under sub-section (1) of section 254 and cannot be used to recall orders passed under section 256. The Court distinguished between reviewing and recalling an order and rectifying a mistake in the order, stating that the power to review can reverse the entire result, while rectification is limited to correcting arithmetical or clerical errors. Referring to various precedents, the Court noted that the Tribunal does not have the authority to review or recall its orders. Based on the analysis and the absence of a statutory provision for review by the Tribunal, the Court concluded that the impugned order recalling the earlier order passed under section 256 of the Act should be quashed. In the final decision, the petition was allowed, and the impugned order dated December 22, 1993, was quashed, with no costs imposed.
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