2000 (11) TMI 280 - AT - Income Tax

Summary

Issues:
1. Jurisdiction of Single Member Bench in deciding the appeal.
2. Rectification of order passed in ITA No. 259/Asr/1995.

Analysis:

1. Jurisdiction of Single Member Bench:
The case involved a penalty imposed under section 271B of the IT Act, 1961, for not getting the books of accounts audited as per section 44AB. The assessee challenged the jurisdiction of the Single Member Bench in deciding the appeal, arguing that the total income determined by the AO exceeded the threshold for Single Member jurisdiction. The Tribunal rejected the assessee's contention, stating that the appeal was rightly placed before the Single Member Bench. The Tribunal considered the objections raised by the assessee regarding jurisdiction in Misc. Appln. No. 23/Asr/1996 and concluded that the Single Member Bench had the authority to decide the appeal. The Tribunal emphasized that the same objections raised in the present application had already been considered and rejected in the previous application, leading to the dismissal of the current application.

2. Rectification of order:
The assessee filed a miscellaneous application seeking rectification of the order passed in ITA No. 259/Asr/1995. The application highlighted various alleged defects in the appeal process, including discrepancies in the assessed income figures and appeal fee amount. The Division Bench of the Tribunal dismissed the application, stating that the appeal was correctly placed before the Single Member Bench and that there was no mistake apparent from the records. The Tribunal further explained that under section 254(2) of the IT Act, it did not have the authority to rectify the order passed in Misc. Appln. No. 23/Asr/1996, as the application was filed after the four-year time limit specified by the law. The Tribunal cited legal precedents to support its decision, emphasizing that rectification under section 254(2) is limited to correcting mistakes apparent from the record in orders passed under section 254(1) of the Act. The Tribunal concluded that the second application for rectification was not maintainable and dismissed the miscellaneous application.

In summary, the Tribunal upheld the jurisdiction of the Single Member Bench in deciding the appeal and dismissed the application seeking rectification of the order passed in ITA No. 259/Asr/1995, citing legal constraints on rectification under section 254(2) of the IT Act.