2020 (10) TMI 833 - AT - Income Tax

Rectification of mistake u/s 254 - certain mistakes apparent on record have occurred in the common order in 2019 (8) TMI 1225 - ITAT CHANDIGARH - escaped attention of the Tribunal - Reference has been made to certain additional facts and evidences stating that the Tribunal has erred in not taking note of these additional facts and evidences - HELD THAT - DR could not point out any mistake in the impugned order which can be said to be a mistake apparent from record. In fact, the Department through these applications seeks the review of the order by way of pleading additional facts which is not permissible in a rectification application u/s 254(2) of the Income Tax Act, 1961. This Tribunal does not have any power to review its own order. Power of rectification under section 254(2) can be exercised only when the mistake which is sought to be rectified is an obvious and patent; mistake which is apparent from the record, and not a mistake which requires to be established by arguments and a long drawn process of reasoning on points on which there may conceivably be two opinions. Even failure by the Tribunal to consider an argument advanced by either party for arriving at a conclusion is not an error apparent on the record, although it may be an error of judgment and under such circumstances the Tribunal has no jurisdiction under section 254(2) to pass the second order. In this case the Ld. DR has failed to point out what fact or even any argument coming from record, the Tribunal has failed to consider in the order dated 12.7.2019. - Decided against revenue.

Summary

Issues involved:
Department seeking rectification of mistakes in the Tribunal's common order dated 12.07.2019 in various cases.

Analysis:
The Department filed Misc. Applications to contest cases afresh due to alleged mistakes in the Tribunal's order. The Department claimed the Tribunal erred by not considering additional facts and evidence. However, the Tribunal found no mistake apparent on record. The Department sought to review the order by introducing new facts, which is impermissible under section 254(2) of the Income Tax Act, as the Tribunal lacks the power to review its own order. Citing legal precedent, the Tribunal emphasized that rectification can only be made for obvious and patent mistakes, not those requiring lengthy arguments or reasoning. The failure to consider an argument does not constitute an error apparent on the record. Despite the Department's contentions, they failed to identify any fact or argument overlooked by the Tribunal in its order.

Therefore, based on the legal position and observations, the Tribunal dismissed the Department's applications on 06.10.2020, as no merit was found in the claims made by the Department.