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Issues Involved:
1. Jurisdiction of CIT(Appeals) under Section 246 to hear an appeal against an order under Section 206C of the Income-tax Act. 2. Applicability of Section 154 for rectifying the order passed by CIT(Appeals). 3. Competence of CIT(Appeals) to review and rectify its own order under Section 154. 4. Interpretation of 'mistake apparent from record' under Section 154. Issue-wise Detailed Analysis: 1. Jurisdiction of CIT(Appeals) under Section 246 to hear an appeal against an order under Section 206C of the Income-tax Act: The primary contention revolved around whether the CIT(Appeals) had the jurisdiction under Section 246 to entertain an appeal against an order passed under Section 206C. The assessee argued that the matter required a detailed interpretation of various provisions of the Income-tax Act, including Sections 246, 248, 206C, 44AC, 4, 5, and 2(7). The CIT(Appeals) had initially entertained the appeal and dismissed it on merits, but later rectified his order under Section 154, stating that no appeal lies against an order under Section 206C. The Tribunal noted that the term 'assessee' includes any person deemed to be an assessee in default under any provision of the Act, thus covering the DETO under Section 2(7)(c). 2. Applicability of Section 154 for rectifying the order passed by CIT(Appeals): The Tribunal examined whether the CIT(Appeals) could rectify his order under Section 154, which allows for rectification of a 'mistake apparent from the record.' The Tribunal highlighted that a mistake apparent from the record must be obvious, patent, glaring, and self-evident. The Tribunal concluded that the issue of whether an appeal lies against an order under Section 206C is a debatable one and not a clear mistake that could be rectified under Section 154. 3. Competence of CIT(Appeals) to review and rectify its own order under Section 154: The Tribunal observed that the CIT(Appeals) had exercised his jurisdiction consciously under Section 246 and dismissed the appeal on merits. The CIT(Appeals) could not subsequently review his own order under Section 154 on the ground that no appeal lies against the order under Section 206C. The Tribunal emphasized that the CIT(Appeals) had acquiesced with the jurisdictional fact in the appellate proceedings, and it was not permissible to change the stance when the matter was pending before the ITAT. 4. Interpretation of 'mistake apparent from record' under Section 154: The Tribunal discussed the meaning of 'mistake' and 'mistake apparent from record,' citing various legal definitions and case laws. It was noted that a mistake apparent from the record must be manifest, plain, or obvious and should not require a long-drawn process of reasoning. The Tribunal concluded that the issue of whether an appeal lies against an order under Section 206C involves complex arguments and interpretations, making it unsuitable for rectification under Section 154. Conclusion: The Tribunal set aside the order of the CIT(Appeals) passed under Section 154, stating that there was no obvious or clear mistake of law that could have been rectified. The cross objections filed by the revenue were dismissed as infructuous. Consequently, all the appeals filed by the assessee were allowed, and the cross objections filed by the revenue were dismissed.
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