2024 (4) TMI 1121 - SCH - Income Tax

Legality of revision of order of Tribunal u/s 254 on ground of retrospective overruling - Penalty imposed u/s 271(1) if returned income is a loss - Revenue contended that order of Tribunal had been based entirely on the decision of the Supreme Court decision and the latter decision had been subsequently overruled by a larger Bench of the Supreme Court, thus there was a mistake apparent on the face of the record - As decided by HC 2012 (6) TMI 39 - DELHI HIGH COURT decision larger Bench of the Supreme Court has to be regarded as the law as it existed when the order was passed by Tribunal, there is a clear mistake apparent from the record. Only limitation for correcting the mistake is that imposed by the provisions of Section 254(2) itself and that is only with respect to time. HELD THAT - In continuation of the order M/S. LAKSHMI SUGAR MILLS CO. LTD. ANR. VERSUS COMMR. OF I.T. CIRCLE 4 (1) ANR. 2024 (4) TMI 1083 - SC ORDER it is fairly stated by petitioners that the order DCIT, CIRCLE 4 (1) , NEW DELHI VERSUS M/S. LAKSHMI SUGAR MILLS CO. LTD. 2009 (4) TMI 1064 - ITAT DELHI passed by Tribunal has not been challenged by the petitioners as it was not in their knowledge as the same was an ex-parte order, the petitioners will join the proceedings, and that they may be permitted to raise all the contentions before the Prescribed Authority. Special Leave Petition is disposed of with liberty to the petitioners to raise all the legal and factual contentions before the Prescribed Authority to whom the matter has been remitted by the Tribunal.

Summary

The Supreme Court disposed of the Special Leave Petition, allowing the petitioners to raise all legal and factual contentions before the Prescribed Authority as per the order dated 16.04.2024. The petitioners were not aware of the ex-parte order dated 06.04.2009 passed by the Income Tax Appellate Tribunal, Delhi Bench.