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2023 (8) TMI 1080 - HC - Income TaxRectification of mistake - scope and ambit of power of the Appellate Tribunal vested u/s 254(2) to rectify palpable mistake - Dismisal of appeal on low tax effect - HELD THAT:- Only palpable errors which do not require detailed inquiry are amenable to power of rectification. Rectification is a power which is comparatively restrictive than the power of review. In the instant case, the stand of Revenue was accepted by the Tribunal by holding that appeal was wrongly dismissed u/s 268A(1) r.w.s. 268A(4) of IT Act, after holding that palpable error had crept in, inasmuch as Tribunal failing to see that appeals filed could not have been dismissed by Tribunal merely on the ground that financial implication involved is below 50 lacs especially when subject matter fell within the exception Clause 10(c) of CBDT Instruction No.03/2018 dated 11.07.2018 r/w Instruction No.17/2019 dated 08.08.2019, that the audit objection has been accepted. The fact, that Tribunal missed seeing this obvious and palpable mistake was certainly a cause giving rise to rectification and; therefore, this Court has no hesitation to hold that the power of rectification exercised by Tribunal u/s 254(2) of the IT Act was well within the bounds of law. Whether the documentary proof regarding acceptance of audit objection was on record of the Tribunal or not? - If not, then it’s effect? - This Court called the record of the Tribunal and perused the same. In both these records in original, this Court did not find any audit objection or its acceptance on record. Tribunal is a judicial body and; therefore, need to adhere to all the principles of natural justice which are codified in the Income Tax Act before deciding a case. In the instant case, it is not clear from the record as to whether the relevant documents being produced by the Revenue contains the foundational documents to support the ground that the case fell within the exception Clause 10(c) of CBDT Instruction No.03/2018, dated 11.07.2018 r/w Instruction No.17/2019 dated 08.08.2019. In view of above, this Court has no manner of doubt that the first question as regards jurisdictional purviews of power of rectification is concerned, the same is decided against the Assessee but the other substantial questions of law as aforesaid are decided in favour of the Assessee.
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