TMI Blog1996 (9) TMI 616X X X X Extracts X X X X X X X X Extracts X X X X ..... made under section 40A(8) of the Income-tax Act. It was the case of the assessee that even if disallowance is required to be made, then the amount of interest which is periodically credited to the account of the creditor is not a 'deposit' and, therefore, in calculating the disallowance under the said section, this interest element should be eliminated. This contention of the assessee was negatived by the Tribunal in the said order. Thereupon, the assessee had filed a miscellaneous application, which was registered as M.A. No. 166 of 1995, which was dismissed by the Tribunal on 16th October, 1995 and it was held that through the miscellaneous application, the assessee is only canvassing a highly debatable issue and such contentions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... available at pages 1 to 14 of the assessee's compilation and had argued that the Tribunal has the inherent power to correct the mistakes committed by it and it is also the duty of the Tribunal to ascertain the correct law. It was also submitted that the Tribunal is having a wrong notion that it has no power to review its own order. According to him, the Tribunal is possessed of such powers and in that connection, reliance was placed on the decision of the Supreme Court, referred earlier. 5. As regards merits, it was contended that the dispute was with regard to the disallowance made under section 40A(8). It was pointed out that the stand of the assessee was that the amount lying on the credit side in the current account of the direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvanced before us and have gone through the decisions cited at the Bar. It is undisputed that the point which is being canvassed through the miscellaneous application was argued at the time of hearing of the appeal and the assessee's stand on the point was specifically rejected. Since the Tribunal had already taken a conscious decision on the point, we are unable to agree that there is any mistake apparent from the record, which needs rectification. It is well-settled that the power of rectification under section 254(2) of the Act can be exercised only when the mistake, which is sought to be rectified, is an obvious and patent mistake, which is apparent from the record, and not a mistake which requires to be established by arguments and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plenary jurisdiction to prevent miscarriage of justice or to correct grave and palpable errors committed by it. These observations were made obviously in connection with the High Court's power of review in respect of the disposal of petitions under Article 226 of the Constitution. The principle laid down in the said case, in our opinion, cannot be applied to the facts of the instant case. Besides this, it could not be established that any grave and palpable error has been committed by the Tribunal resulting in miscarriage of justice. That apart, in the decision of Patel Narshi Thakershi's case (supra), the Hon'ble Supreme Court has held that the power to review is not an inherent power. It must be conferred by law either specif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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