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TMI Blog2016 (2) TMI 747X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of CIT Vs Manjunatha Cotton & Ginning Factory (2013 (7) TMI 620 - KARNATAKA HIGH COURT ) was referred by the counsel during the course of hearing of the appeal, but it was only in support of the proposition that in the absence of mala fide on the part of the assessee, no penalty can be levied u/s 271(1)(c) of the IT Act, 1961. This Tribunal had considered this decision and rendered a finding at para-5.2 of the order. There is no whisper either in the order of the CIT(A) or in the order of the Tribunal that the assessee had advanced this plea. No new plea can be raised by invoking the jurisdiction of the Tribunal u/s 254(2) of the IT Act, 1961. The Tribunal is bound to adjudicate only on the grounds which are specifically raised and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndered on this aspect. Therefore, he submitted that the order may be recalled in order to adjudicate this ground of appeal. 4. On the other hand, learned Sr.DR relied on the orders of the Tribunal and submitted that the Tribunal had considered all the grounds of appeal and adjudicated the matter and submitted that the appeal cannot be re-argued under the provisions of 254(2) of the IT Act, 1961. 5. We have heard the rival submissions and perused the material on record. The only issue raised in the present petition is that the Tribunal had failed to adjudicate the ground that the show cause notice was issued, before levy of penalty u/s 271(1)(c) of the IT Act, 1961, in a mechanical manner without application of mind. On mere perusal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scope and amplitude of sec. 254(2) and the analogous provision s. 154 of the Act have been considered by catena of decisions of the apex Court and other High Courts. The uniform opinion of the Courts of superior jurisdiction is that a patent, manifest and selfevident error which does not require elaborate discussion of evidence or argument to establish it, can be said to be an error apparent on the face of the record and can be corrected under s. 254(2). An error cannot be said to be apparent on the face of the record if one has to travel beyond the record to see whether the judgment is correct or not. An error apparent on the record means an error which strikes one on mere looking and does not need a long drawn out process of reasoning on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two opinions are possible then it cannot be said to be a mistake apparent on the record. When prejudice resulting from an order is attributable to the Tribunal s mistake, error or omission, it is its bounden duty to set it right. The purpose behind the enactment of s. 254(2) of the Act to amend any order passed under sub-s. (1), if any mistake apparent from the records is brought to the notice of the Tribunal, is based on the fundamental principle that no party appearing before the Tribunal, be it an assessee or the Department, should suffer on account of any mistake committed by the Tribunal. This fundamental principle has nothing to do with the inherent power of the Tribunal. If prejudice is resulted to the party, which prejudice is attri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. vs. Government of Andhra Pradesh, Rep. by the Dy. CCT AIR 1964 SC 1372, Batuk K. Vlyas vs. Surat Borough Municipality ILR 1953 Bom 191, Mrs. K.T.M.S. Umma Salma vs. CIT (1983) 144 ITR 890, 895 (Mad), Kil Kotagiri Tea Coffee Estates Co. Ltd. vs. ITAT (1989) 75 CTR (Ker) 115 : (1988) 174 ITR 579 (Ker), CIT vs. R. Chelladurai (1979) 11 CTR (Mad) 157 : (1979) 118 ITR 108 (Mad), State of Tamil Nadu vs. Thakorebhai Bros. (1983) 52 STC 104 (Mad), Jainarain Jeevraj vs. CIT (1979) 13 CTR (Raj) 342 : (1980) 121 ITR 358, 363 (Raj), CIT vs. Vardhman Spinning (1997) 139 CTR (P H) 322 : (1997) 226 ITR 296, 302 (P H), Bata India Ltd. vs. Dy. CIT (1996) 217 ITR 871 (Cal) and CIT vs. Prahlad Rai Todi (2001) 171 CTR (Gau) 537 : (2001) 251 ITR 833 (G ..... X X X X Extracts X X X X X X X X Extracts X X X X
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