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TMI Blog2013 (4) TMI 912X X X X Extracts X X X X X X X X Extracts X X X X ..... st respondent preferred an appeal against the assessment order before the Commissioner of Income-tax (Appeals). The claim of depreciation was also a subject-matter in the said proceedings. The depreciation dis-allowances is to the extent of 4 crores on the asset purportedly leased out. The first appellate authority held in favour of the first respondent. 3. The Finance Act (No. 2) 1998 introduced a scheme known as Kar Vivad Samadhan Scheme . Subsequent to the notification of the said scheme, the first respondent filed second appeal before the second respondent, Income-tax Appellate Tribunal (for short the Tribunal) and the appeal was barred by limitation by 26 days. An application was filed for condoning delay and the application was su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Dr. Krishna, learned Counsel appearing for the Department and Sri Sarangan, learned Senior Counsel for the assessee. Dr. Krishna, learned Counsel took me through the pleadings to contend that a fraud has been played and the same was highlighted by the petitioner and the Tribunal instead of appreciating the stand of the department has chosen to reject the same. According to him, the true justice is polluted by the first respondent. He also says that a fraud has been played on the Tribunal by making an affidavit of Mrs. Deepa and filing it before the Tribunal for condonation of delay and admission of an appeal. He strongly relies on the judgment of the Supreme Court in United India Insurance Co. Ltd. s case (supra). The Department has filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of examination of Mrs. Deepa and Mr. Buhari. The documents are found at page 50 and it runs up to page 64. The petitioner made an application to recall the order on the ground of a fraud and in the light of the Supreme Court s judgment. In the said petition, the Department pointed out several omissions in the affidavit filed by Mrs. Deepa. The Tribunal has rejected the petition even without referring to the judgment on the basis of which the Miscellaneous Petition was filed. In the application, the petitioner has stated that the application now preferred by them is for invoking the inherent powers of the Court for recalling its orders on the ground of a fraud. Dr. Krishna, as I mentioned earlier complains that the Tribunal has not even ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevancy of fraud and the remedy in such matters in paragraphs 15 and 16. The Supreme Court ruled that if an opportunity is not provided to litigants to substantiate their contention it might certainly lead to serious injustice. In the case on hand, to my shock and surprise, the Tribunal consisting of a Judicial Member had not even thought fit to apply his mind with regard to a fraud and its effect on judicial bodies. In fact, to my further shock and surprise the Tribunal has also not even referred to the judgment of the Apex Court notwithstanding the petition being based on the said judgment of the Supreme Court. I express my strongest displeasure the way in which an application is dealt by a Judicial body consisting of a Judicial Member. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court has ruled that even when express power to review its orders is not conferred by a statute, a Court or a Tribunal has inherent jurisdiction to rectify a wrong committed by itself . Therefore, it cannot be said that the Tribunal has absolutely no jurisdiction as held by it even when a plea of fraud is placed before it. It is rather unfortunate that the Tribunal has not focused the after effect of fraudulent pleas and fraudulent acts by litigants while passing the impugned order. I must also point out at this stage that the wheels of justice can move only on true facts. Any mischief including a fraud on the Tribunal would result in derailing the wheels of justice. Justice is based on truth and truth cannot be trampled by an act of fra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the petitioner before me. Any non-interference in a case like this would be perpetuating and percolating a fraud played on a Judicial Tribunal. Moreover, the petitioner has also placed some acceptable materials with regard to fraud. Therefore notwithstanding the stiff opposition of Sri Sarangan, learned Senior Counsel, I am compelled to interfere in the larger interest of purity of justice and purity of Tribunal. I must also notice that the Tribunal has gravely erred in finding fault with the Department in not bringing it to the notice of the Tribunal, the order of the High Court. A careful reading of the material on record would reveal that the appeal filed by the Tribunal was dismissed by this High Court on the ground of no substanti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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