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Issues involved:
The assessee sought the Tribunal to recall/modify its order related to undisclosed income and ex parte assessment u/s 144 of the Income Tax Act for the block period from assessment years 1997-98 to 2002-03. Undisclosed Income Issue: The assessee contended that commission and receipts from a company were duly recorded in the books of account, thus not undisclosed income. The opening cash balance was explained as savings from abroad and loans advanced to friends. The Tribunal noted the ex parte assessment under section 144 and the CIT (A)'s limited power to set aside assessments post-2001. The Tribunal upheld its order, stating it cannot review its own decision under section 254(2) of the Act. The Tribunal emphasized that rectification under section 254(2) is limited to correcting apparent mistakes, not for rehearing the entire matter. The Tribunal dismissed the Miscellaneous Application, finding no mistake in its order. Ex Parte Assessment Issue: The Tribunal highlighted the ex parte assessment by the Assessing Officer and the CIT (A)'s restricted power to set aside assessments post-2001. The Tribunal clarified that under section 254(2) of the Act, it cannot review its own decision, as this provision is limited to rectifying mistakes apparent from the record. The Tribunal emphasized that recalling an order is permissible only under specific circumstances outlined in ITAT Rules, 1963, such as absence during the appeal hearing. In this case, the Tribunal found no mistake in its order and dismissed the Miscellaneous Application. Conclusion: The Tribunal dismissed the Miscellaneous Application filed by the assessee, upholding its original order related to undisclosed income and ex parte assessment. The Tribunal clarified the limited scope of rectification under section 254(2) of the Act and emphasized that recalling an order is only allowed under specific circumstances as per ITAT Rules, 1963. The Tribunal found no mistake in its order and maintained its decision.
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