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2016 (3) TMI 1421 - AT - Income TaxRectification of mistake u/s 254 - whether the findings in case of M/s. Madhucon Sino Hydro J.V. [2014 (2) TMI 138 - ITAT HYDERABAD] are ‘directions’ or ‘observations’? - HELD THAT:- This finding of ITAT was considered by Assessing Officer as direction of the ITAT and without following the due procedure as prescribed under the law initiated proceedings u/s. 163 and 147 of the IT Act. The ITAT in the impugned order ha s held that the same are null and void. While deciding, the ITAT elaborately discussed why the same cannot be considered as ‘direction’ in para 9 and even if it is considered as ‘direction’, why the same cannot be considered as legal. Deficiencies in not recording a satisfaction, not taking approval from the prescribed authority and limitation of time in initiating proceedings were clearly discussed. Since the findings in the order are after due consideration and elaborate discussion, the same cannot come within the purview of ‘mistake apparent from record’. If there is any error of judgment, the same has to be challenged in a higher forum. The application clearly suggests that the decision taken require ‘review’ which is not within the purview of the provisions of Section 254(2). As rightly held in the case of Ramesh Electric Trading Co Ltd.[1992 (11) TMI 32 - BOMBAY HIGH COURT], the power of review of its own order is not with ITAT and so the application made is not maintainable.
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