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2021 (1) TMI 97 - HC - Income TaxRectification u/s 254 - maintainability of appeal of low tax effect - application u/s 254(2) filed by the Revenue for recalling the order dated 23.08.2019 and for restoration of Appeal on the sole ground that the Appeal in question qualified exceptional condition specified in para 10(c) of the Board's Circular - HELD THAT - As the appellant press in service following substantial question of law - Under the garb of rectification under Section 254(2), whether Tribunal was justified in recalling the appeal, when appeal was heard in the presence of the appellant and the respondent and when the Tribunal is not vested with power to recall the appeal. However, in the given facts of present case, the substantial question as proposed does not arise for consideration. It being the fundamental principle for administration of justice that an act of the Court shall prejudice no man (actus curiae neminem gravabit). In the case at hand, as there was no occasion for Tribunal to have considered the merit and the same could not have been dismissed as withdrawn being covered by the exceptional conditions contained in para 10(c) of the Board's Circular, we do not perceive any jurisdictional or legal error in the order as would attract the proposed substantial question of law.
Issues:
1. Appeal under Section 260A of the Income Tax Act, 1961 against the order passed by the Income Tax Appellate Tribunal. 2. Recalling the order dated 23.08.2019 and restoration of Appeal based on exceptional conditions specified in para 10(c) of the Board's Circular. 3. Tribunal's decision on the admissibility of Revenue's applications under Section 254(2) of the IT Act. 4. Consideration of substantial question of law regarding the Tribunal's power to recall the appeal. 5. Jurisdictional and legal errors in the order dismissing the appeal. Analysis: 1. The judgment involves an appeal under Section 260A of the Income Tax Act, 1961, challenging the order of the Income Tax Appellate Tribunal dated 07.09.2020. The Tribunal had permitted the Department to withdraw the appeal based on the tax effect being less than 50 lacs, subject to certain conditions. 2. The issue of recalling the order dated 23.08.2019 and restoration of the Appeal was raised by the Revenue under Section 254(2) of the IT Act. The Tribunal considered the exceptional condition specified in para 10(c) of the Board's Circular, which mandates contesting adverse judgments on specified issues regardless of the tax effect. 3. The Tribunal, after considering the rival contentions, held that the impugned order was not maintainable due to the lack of proper opportunity for the Revenue to raise objections. The Tribunal acknowledged the legal infirmity and provided liberty to parties to move the Tribunal for appeals dismissed in limine. 4. The appellant raised a substantial question of law regarding the Tribunal's power to recall the appeal under Section 254(2). However, the Tribunal found no jurisdictional or legal error in the order, stating that the proposed substantial question did not arise in the present case. 5. The judgment emphasized the fundamental principle of justice that no act of the Court should prejudice any party. It concluded that there was no jurisdictional or legal error in dismissing the appeal, leading to the failure of the appeal and its subsequent dismissal. This comprehensive analysis covers the various issues addressed in the judgment, including the Tribunal's decision on recalling the appeal, consideration of legal errors, and the fundamental principles of justice applied in the case.
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