1996 (6) TMI 104 - AT - Income Tax

Summary

Issues Involved:

1. Delay in filing reference applications.
2. Jurisdiction of the CIT (Central), Bangalore.
3. Validity of service of Tribunal orders.
4. Tribunal's power to condone delay.
5. Tribunal's inherent power to correct mistakes.

Detailed Analysis:

1. Delay in Filing Reference Applications:

The Revenue filed a Miscellaneous Petition against the Tribunal's order rejecting their reference applications as time-barred. The Commissioner filed the reference applications under section 256(1) of the Income-tax Act on 1-8-1994, accompanied by petitions for condonation of a 136-day delay. The Tribunal had rejected these applications as time-barred, considering the orders were first received by the CIT (Central), Bangalore on 18-1-1994.

2. Jurisdiction of the CIT (Central), Bangalore:

The orders of the Tribunal were initially sent to the CIT (Central), Bangalore, who had no jurisdiction over the case at the time. The jurisdiction had changed to CIT (Central), Madras, and later to CIT, Cochin. The CIT, Cochin received the orders on 13-6-1994. The Revenue argued that the period for filing the reference applications should be reckoned from the date the CIT, Cochin received the orders, not from the date they were received by the CIT (Central), Bangalore.

3. Validity of Service of Tribunal Orders:

The Tribunal initially held that the orders were validly served on the CIT (Central), Bangalore, as the Tribunal was not informed of the jurisdictional change. The Tribunal noted that the CIT (Central), Bangalore did not return the orders to notify the Tribunal about the jurisdictional changes. Therefore, the Tribunal reckoned the delay from the date the orders were served on the CIT (Central), Bangalore.

4. Tribunal's Power to Condon Delay:

The Tribunal's power to condone delay is limited to 30 days beyond the prescribed period. The Tribunal observed that the delay exceeded 30 days and thus could not be condoned. However, the Tribunal recognized that the reference applications were filed within 60 days from the date the CIT, Cochin received the orders, meaning there was no delay to condone.

5. Tribunal's Inherent Power to Correct Mistakes:

The Tribunal acknowledged its inherent power to correct mistakes, as recognized by various judicial authorities. The Tribunal found a mistake in reckoning the period of delay from the date of service on the CIT (Central), Bangalore, who had no jurisdiction. The Tribunal cited several judicial precedents supporting the inherent power to correct such mistakes to prevent prejudice to a party.

Conclusion:

The Tribunal recalled its order passed on 22-5-1995, recognizing that the reference applications filed by the CIT, Cochin on 1-8-1994 were within the prescribed period of 60 days. The Tribunal noted that there was no delay to be condoned and that the petition for condonation of delay was misconceived. The Tribunal allowed the Revenue's Miscellaneous Petition and decided to post the reference applications for hearing in due course.