2016 (11) TMI 162 - HC - Income Tax

Review and rectification of order - Held that - In view of the observations made by the Honourable Apex Court in Assistant Commissioner of Income-Tax v. Saurashtra Kutch Stock Exchange Ltd. (2008 (9) TMI 11 - SUPREME COURT ), in our opinion, the Tribunal has the power to review its own order and rectify the error committed by it. We, therefore, set aside the impugned order passed by the Tribunal and remit the matter back to the Tribunal to hear the Miscellaneous Application afresh and decide the same on its own merits and in accordance with law. Accordingly, this appeal is allowed. The question posed for our consideration is answered in favour of the assessee and against the revenue.

Summary

Issues:
Challenge to the order of the Income Tax Appellate Tribunal - Power of Tribunal to review its own order - Rectification of an error in the Tribunal's decision.

Analysis:
The appellant challenged the order of the Income Tax Appellate Tribunal, Rajkot Bench, regarding the dismissal of a review. The main issue revolved around whether the Tribunal's order was perverse as it failed to address certain challenges made by the appellant and rejected the Miscellaneous Application pointing out the mistake. The appellant argued that the Tribunal erred in holding it had no power to review its own decision, citing a Supreme Court decision emphasizing rectification of errors to ensure justice. The respondent did not contest this position.

The High Court, referring to the Supreme Court's ruling, acknowledged the Tribunal's authority to review its own orders and rectify mistakes. Consequently, the High Court set aside the Tribunal's order and remitted the matter back to the Tribunal for a fresh hearing of the Miscellaneous Application, directing a decision based on merits and in accordance with the law. The appeal was allowed in favor of the assessee, emphasizing the importance of rectifying errors to uphold justice and fairness in legal proceedings.