1980 (3) TMI 69 - HC - Income Tax

Summary

Issues:
1. Failure to comply with court rules and non-appearance at the hearing.
2. Application for invoking inherent power to recall order.
3. Review application filed due to accidental default in submitting paper book.
4. Arguments regarding the power of the High Court to recall an order.
5. Consideration of inherent powers to ensure justice and equity.
6. Comparison between review and appeal processes.
7. Decision on the review application and the scope of the court's power.

Analysis:

The judgment by the High Court of Rajasthan dealt with a case where the assessee failed to comply with the court rules by not submitting the paper book and not appearing at the hearing. This led to the Division Bench returning the reference made by the Income-tax Tribunal as unanswered. The assessee subsequently filed an application to recall the order, citing accidental default due to health issues of a director. The court considered the arguments regarding its power to recall the order, with the assessee claiming inherent powers of the court to ensure justice and equity.

The court emphasized that inherent power is rooted in necessity and allows proceedings to be conducted justly. It noted that the previous order had correctly held that the court was not required to answer the question referred due to the party's non-appearance. The court clarified that a review is not the same as an appeal, highlighting differences such as reconsideration by the same bench and the restricted nature of a review's power to correct or improve an order.

Ultimately, the court found no reason to review the previous order, as the power to recall would only be exercised if the order was evidently wrong. The judgment underscored that the court's decision to refuse to answer the question referred in the absence of the party was valid and not challenged. The court's analysis focused on upholding the principles of justice and equity while distinguishing between the review and appeal processes to maintain the integrity of the judicial system.