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2017 (9) TMI 194 - HC - Income TaxRectification of mistake u/s 254 - Rejection of application on the ground of Doctrine of merger - addition made by AO u/s 40(a)(ia) - error apparent on face of the record had been committed- Held that:- It appears that though the department had filed appeals before the High Court, these appeals did not concern the issue which the Tribunal had decided in the department's appeals in case of respondent assessee. The Tribunal therefore, erroneously concluded that the order of the Tribunal having merged with that of the High Court, Misc. Applications for rectification were rendered infructuous. We do not intend to give final answer to this question in the present petition though prima facie it may appear that even without any specific powers under the statute, for example, as referred to in subsection( 2) of section 254 for rectification, it would appear that any judicial or quasijudicial authority would have inherent powers to correct an error which is plainly that of clerical, typographical, arithmetical or factual. If the Tribunal had proceeded on factual basis which was wholly and concededly erroneous, the Tribunal perhaps even in absence of specific provision of subsection( 2) of section 254, had the power to recall the order. - ITAT has rejected the application is incorrect on factual premise - Matter restored before ITAT
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