The Tax Publishers2021 TaxPub(DT) 0303 (Sur-Trib)

INCOME TAX ACT, 1961

Section 254(2)

Under section 254(2), the Tribunal has jurisdiction only to rectify mistakes apparent from record that are brought to its notice, but it cannot go into the merits of the appeal again. Therefore, the miscellaneous application preferred by assessee had rightly been dismissed.

Appeal (Tribunal) - Rectification under section 254(2) - No apparent mistake -

Assessee filed a miscellaneous application pointing out mistake apparent from record within the meaning of section 254(2) in the order of Tribunal. He submitted that the Tribunal levied penalty under section 271(1)(c) on the basis of the finding given in the quantum proceedings, however, it is well-settled that the finding in the quantum proceedings are not conclusive and penalty proceedings are distinct from quantum proceedings, therefore, the penalty under section 271(1)(c) could not be levied merely based on quantum proceedings. Held: In quantum proceedings in assessee's own case, the Tribunal dismissed the appeal of the assessee and confirmed the addition made by the AO. Further, the Tribunal considered the case laws relied on by the assessee and confirmed the penalty under section 271(1)(c). In instant case, the assessee submitted various case laws relating to penalty under section 271(1)(c), which were related to interpretation of legal issue vis-à-vis facts. To examine the legal interpretation and to examine the finding of the Tribunal is nothing but review of its own order, which is not permitted under the Act. Power to rectify an order under section 254(2) is extremely limited and it does not extend to correcting errors of law or re-appreciating factual findings. Under section 254(2), the Tribunal has jurisdiction only to rectify mistakes apparent from record that are brought to its notice, but it cannot go into the merits of the appeal again. Therefore, the miscellaneous application preferred by the assessee was dismissed.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2004-05



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