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Issues Involved:
1. Reopening of assessment proceedings. 2. Addition of interest income. 3. Non-consideration of documents and case laws in the appeal order. 4. Power of the Tribunal to recall or review its own order. Detailed Analysis: 1. Reopening of Assessment Proceedings: The Tribunal confirmed the reopening action initiated by the Assessing Officer. It referenced the Supreme Court's decision in Lakshmi Narayana Badhani v. CIT 20 ITR 594, which validated reassessment proceedings under similar circumstances. The Tribunal held that the Assessing Officer was reasonable and justified in starting the reassessment proceedings, aligning with the binding decision of the Supreme Court. It emphasized judicial discipline, stating that judgments of higher courts should prevail over decisions of lower authorities. 2. Addition of Interest Income: The Tribunal upheld the addition of Rs. 1,08,000 for each assessment year. It agreed with the Commissioner (Appeals) that the method of accounting applied by the assessee was properly addressed. The Tribunal found the Commissioner's discussion and conclusions regarding the accrual of income to be reasonable and justified, thus declining to interfere with the order on this account. 3. Non-consideration of Documents and Case Laws: The assessee filed Miscellaneous Petitions claiming that the Tribunal did not discuss various documents and case laws, specifically CIT v. L. Venkatapathy [1987] 163 ITR 178/[1984] 19 Taxman 442 and Dr. N.K. Brahamachari v. CIT [1990] 186 ITR 507. The Tribunal, however, stated that the mere absence of detailed discussion on each document or case law does not imply non-application of mind. It cited its operative paragraph, which indicated that it had examined the facts and arguments presented by both parties. The Tribunal referenced the Supreme Court's decision in CIT v. K. Y. Pilliah & Sons [1967] 63 ITR 411 and decisions from the Calcutta and Andhra Pradesh High Courts, affirming that it is not necessary to restate the reasons if it agrees with the lower authorities. 4. Power of the Tribunal to Recall or Review its Own Order: The Tribunal clarified that its power to recall an order is limited to Rule 24 of the ITAT Rules, 1963, and does not extend to reviewing its own decisions unless there is a glaring and patent mistake of fact or law. It emphasized that the power to review must be specifically conferred by the Legislature and cannot be inferred as inherent to appellate jurisdiction. The Tribunal cited Patel Narshi Thakershi v. Pradyumansinghji Arjunsinghji AIR 1970 SC 1273, which established that the power to review is not inherent and must be granted by statute. It further referenced decisions from the Punjab and Allahabad High Courts, asserting that the Tribunal can only rectify mistakes apparent on record under section 254(2) of the Act and cannot re-hear a case on merits. The Tribunal concluded that the assessee's petitions lacked merit and substance, as they sought a review under the guise of rectification. It reiterated that the remedy for the assessee lies elsewhere, not before the Tribunal for a fresh decision. Consequently, the Miscellaneous Petitions were dismissed.
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