1996 (7) TMI 594 - HC - Income Tax

Summary

Issues:
1. Whether the Tribunal has the power to review and recall its order under the IT Act, 1961?

Analysis:
The judgment in question revolves around the issue of whether the Tribunal has the authority to review and recall its order under the IT Act, 1961. The petitioner argued that there is no provision in the Act allowing the Tribunal to review or recall its order passed under section 256(1) of the Act. On the other hand, the respondent contended that section 254 of the Act provides the Tribunal with 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, which grant the Tribunal the power to pass orders and to rectify mistakes within a specified timeframe. However, the court highlighted that this power is limited to orders passed under section 254(1) and is not applicable to orders passed under other sections, such as section 256 of the Act.

The court emphasized the distinction between reviewing and recalling an order and rectifying a mistake in the order. While reviewing and recalling an order can lead to a complete reversal of the outcome, rectifying a mistake is limited to correcting arithmetical or clerical errors. The court referenced various cases to support the position that the Tribunal does not have the power to review or recall its order. Ultimately, the court concluded that in the absence of any statutory provision for review by the Tribunal and considering the precedents cited, the impugned order recalling the earlier order passed under section 256 of the Act was deemed to be quashed.

In conclusion, the judgment clarifies the limitations of the Tribunal's power to review and recall orders under the IT Act, 1961. It underscores the importance of statutory provisions and precedents in determining the jurisdiction of the Tribunal in such matters. The decision provides a clear interpretation of the relevant sections of the Act and establishes the boundaries within which the Tribunal can exercise its powers.