2010 (12) TMI 105 - DELHI HIGH COURT

Rectification of order – Powers of Tribunal – power to recall order – No absolute prohibition – whether prejudice caused to party by mistake to be seen - Held that: - The decision rendered in Honda Siel Power Products Ltd., (2007 -TMI - 40390 - SUPREME Court) by the Apex Court is an authority for the proposition that the Income-tax Appellate Tribunal under certain circumstances can recall its own order and there is no absolute prohibition.

In view of the law laid down in Honda Siel Power Products Ltd., (2007 -TMI - 40390 - SUPREME Court) by the Apex Court, the decisions rendered by this Court in K.L. Bhatia (1989 -TMI - 23718 - DELHI High Court), Deeksha Suri (1997 -TMI - 16983 - DELHI High Court), Karan and Co. (2001 -TMI - 13045 - DELHI High Court ), J.N. Sahni (2002 -TMI - 12415 - DELHI High Court ) and Smt. Baljeet Jolly (2000 -TMI - 14110 - DELHI High Court) which lay down the principle that the tribunal under no circumstances can recall its order in entirety do not lay down the correct statement of law.

Any other decision or authority which has been rendered by pressing reliance on K.L. Bhatia (supra) and the said line of decisions are also to be treated as not laying down the correct proposition of law that the tribunal has no power to recall an order passed by it in exercise of power under Section 254(2) of the Act.

When the justification of an order passed by the tribunal recalling its own order is assailed in a writ petition, it is required to be tested on the anvil of law laid down by the Apex Court in Honda Siel Power Products Ltd., (2007 -TMI - 40390 - SUPREME Court) and Saurashtra Kutch Stock Exchange Ltd. (2008 -TMI - 30682 - SUPREME COURT ) - Appeal is dismissed