TMI Blog2014 (1) TMI 1535X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal could not readjudicate the matter under section 254(2) - The scope and ambit of application of section 254(2) is very limited restricted to rectification of the mistakes apparent from the record - Power to rectify a mistake is not equivalent to a power to review or recall the order sought to be rectified - Decided against petitioner. - MA No. 214/Hyd/2013 Arising out of ITA No. 979/Hyd/2012 - - - Dated:- 27-1-2014 - Shri Chandra Poojari And Smt. Asha Vijayaraghavan,JJ. For the Appellant : Sri I. Rama Rao For the Respondent : Sri Jeevan Lal Lavadiya ORDER Per Chandra Poojari, AM: This Miscellaneous Application (MA) by the assessee is seeking rectification in the order of the Tribunal dated 22.03.2013 in IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome from a long-term project, without insisting on the 'completion certificate' of the civic authorities which could be expected only on the completion of the project and not annually. We do not have complete details on record to determine the status of the assessee, viz., whether a developer or a contractor, in relation to Sadguru Krupa Project, and the allowability of deduction under s. 80IB of the Act to the assessee for the year under appeal. We accordingly, set aside the impugned order of the CIT(A) and restore the matter to the file of the Assessing Officer with a direction to the Assessing Officer to re-examine the claim of the assessee for deduction under s. 80IB(10) of the Act afresh, after brining on record all the requisite mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l settled that statutory authority cannot exercise power of review unless such power is expressly conferred. There is no express power of review conferred on this Tribunal. Even otherwise, the scope of review does not extent to re hearing of the case on merit. It is held in the case of CIT vs. Pearl Woollen Mills (330 ITR 164): "Held, that the Tribunal could not readjudicate the matter under section 254(2). It is well settled that a statutory authority cannot exercise power of review unless such power is expressly conferred. There was no express power of review conferred on the Tribunal. Even otherwise, the scope of review did not extent to rehearing a case on the merits. Neither by invoking inherent power nor the principle of mistake of co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasonable cause for being absent at a time when the appeal was taken up and was decided ex parte. Judged in the above background the order passed by the Tribunal is indefensible. 9. The words used in s. 254(2) are 'shall make such amendment, if the mistake is brought to its notice'. Clearly, if there is a mistake, then an amendment is required to be carried out in the original order to correct that particular mistake. The provision does not indicate that the Tribunal can recall the entire order and pass a fresh decision. That would amount to a review of the entire order and that is not permissible under the IT Act. The power to rectify a mistake under s. 254(2) cannot be used for recalling the entire order. No power of review has been gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edent" is an important aspect of legal certainty in the rule of law and that principle is not obliterated by s. 254(2) of the Act and non-consideration of precedent by the Tribunal causes a prejudice to the assessee. (c) Thirdly, power to rectify a mistake is not equivalent to a power to review or recall the order sought to be rectified. (d) Fourthly, under s. 254(2) an oversight of a fact cannot constitute an apparent mistake rectifiable under the section. (e) Fifthly, failure on the part of the Tribunal to consider an argument advanced by either party for arriving at a conclusion is not an error apparent on record, although it may be an error of judgement. (f) Sixthly, even if on the basis of a wrong conclusion the Tribunal has no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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