TMI Blog2011 (10) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... ion the said power could be exercised to review the earlier order passed. See ACIT v. C.N. Ananthram [2003 - TMI - 11343 - KARNATAKA High Court - Income Tax] - Decided in favor of the assessee - IT APPEAL NOS. 131-132 OF 2011 - - - Dated:- 17-10-2011 - N. KUMAR AND RAVI MALIMATH, JJ. A. Shankar for the Appellant. E. Sanmathi Indrakumar for the Respondent. JUDGMENT N. Kumar, J. The assessee has preferred these two appeals arising out of the appeals which were the subject matter before the Tribunal. As a common question of law is involved in these appeals they are taken up for consideration together and disposed off by this common order. 2. The assessee is a partnership firm engaged in the business of purchase and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed the Miscellaneous application filed by the Revenue recalling the order dated 24-9-2009 in its entirety and consequently it dismissed the Miscellaneous application filed by the assessee on the ground that the assessee can agitate his contentions at the time of re-hearing of the appeal. Aggrieved by these two orders the assessee has preferred these appeals 3. Sri A. Shankar, the learned counsel appearing for the assessee contended that under Section 254(2) of the Act a power is vested with the Tribunal which has passed a final order to amend the orders so as to rectify the errors which are borne from the face of the record. It has no power to review the entire order and re-hear the appeal afresh. Therefore he submits that the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled by the assessee in this sub-section on or after the 1st day of October 1998, shall be accompanied by a fee of fifty rupees.] [(2A) In every appeal, the Appellate Tribunal, where it is possible, may hear and decide such appeal within a period of four years from the end of the financial year in which such appeal is filed under sub-section (1) [or sub-section (2)] of section 253: [Provided that the Appellate Tribunal may, after considering the merits of the application made by the assessee, pass an order of stay in any proceedings relating to an appeal filed under sub-section (1) of section 253, for a period not exceeding one hundred and eight days from the date of such order and the Appellate Tribunal shall dispose of the appeal with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellate Tribunal on appeal shall be final." A perusal of the aforesaid provision makes it very clear that the appellate Tribunal after hearing both the parties can pass such orders thereof as it thinks fit. In other words, it can pass an order disposing off the appeal before it finally in the manner as it thinks fit. Sub-Section (2) provides for rectification of any mistake apparent from the record. In the orders passed under Section 254(1), if either of the party to the order under Section 254(1) makes an application for such rectification of mistakes apparent from the record, the Tribunal is vested with the power to amend the order passed under sub-section (1), if it is satisfied that there is a mistake in the order which it has passed u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Tribunal under section 254(1) is the effective order so far as the appeal is concerned. Any order passed under section 254(2) either allowing the amendment or refusing to amend gets merged with the original order passed. The order as amended or remaining unamended is the effective order for all practical purposes. The same continues to be an order under section 254(1). That is the final order in the appeal. An order under section 254(2) does not have existence de hors the order under section 254(1). Recalling of the order is not permissible under section 254(2). Recalling of an order automatically necessitates rehearing and readjudication of the entire subject matter of appeal. The dispute no longer remains restricted to any mistake ..... X X X X Extracts X X X X X X X X Extracts X X X X
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