INCOME TAX ACT, 1961

Section 254

Appeal(Tribunal) - Rectification under section 254 - No mistake apparent - Tribunal had already considered the facts on record and expressed its view

Assessee filed Misc. Application seeking for recalling of the order of Tribunal . Assessee's grievance was that percentage of gross profit of assessee company was 3.40% in the assessment year 2007-08 and same was restricted to 3.30% in case of unaccounted turnover in that year but book result as declared by assessee co. was neither disturbed by the assessing officer nor by any of the appellate authority. As per assessee direction of Tribunal so as to adopt net profit rate of 3.30% in the concerned year on the amount of turnover as disclosed in books of accounts on the basis of order as passed in case of assessee for assessment year 2007-08 was a mistake apparent from record. Revenue submitted that Tribunal had recorded a finding of fact and reached to the particular conclusion, therefore, order of Tribunal should not be reviewed as Tribunal while deciding original appeal had already considered the facts. Held: Assessee's contention was beyond acceptance in view of the finding of fact recorded by CIT(A) that facts and circumstances for assessment year 2007-08 were entirely different from the facts and circumstances of the year under consideration. Hence, profit adopted for that year could not be adopted mechanically for the concerned year as Tribunal had already considered the facts on record and expressed its view.Powers of Tribunal under section 254(2) for rectification of mistake are not wide enough to revisit consciously taken decision. The assessee by way of instant application was seeking review of order, which is not permissible under the law.Accordingly, miscellaneous application was dismissed.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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