TMI Blog2017 (7) TMI 778X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal could not have undertaken such incisive and detailed examination of facts and law to come to the conclusion which are completely contrary to its own conclusion arrived at after detailed considerations. Such powers simply do not flow from the power of rectification under sub-section (2) of Section 254 of the Act. Thus Tribunal committed a serious error in allowing the assessee’s rectification applications and recalling its earlier order of rejection of appeals. The impugned order dated 29.07.2016 is therefore set aside. Consequently, the order passed by the Tribunal of allowing all the tax appeals of the assessee by order dated 25.11.2016 would therefore automatically be rendered non-est. - SPECIAL CIVIL APPLICATION NO. 11130 of 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. Commissioner of Income Tax reported in [2013] 350 ITR 509 (SC) and noted that as per the decisions of the Supreme Court and other courts, three basic features would have to be tested i.e. complete identity between the class of contributors and the participators, the action of the participators and contributors should be in furtherance of the mandate of the association and lastly that there should not be any scope of profiteering by the contributors from a fund made by them which could only be extended or returned to themselves. The Tribunal thereafter by a detailed reasoned order proceeded to apply each of the tests to facts on hand and ultimately came to the conclusion that none of the tests are satisfied and therefore the principle of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sub-section (1) of Section 254, the Appellate Tribunal would after hearing both sides on appeal pass such orders as it thinks fit. Sub-section (2) of Section 254 in turn provides that the Appellate Tribunal at any time within six months (previously the period was four years) from the end of the month in which the order was passed, with a view to rectifying any mistake apparent from the record, amend any oder passed by it under sub-section (1). It is well settled that this power of rectification of the Tribunal is for correction of a mistake apparent from the record and is vastly different and far more circumscribed than the review powers. In other words, while exercising powers under rectification, the Tribunal cannot review or reconsider ..... X X X X Extracts X X X X X X X X Extracts X X X X
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