Inherent power cannot recall a tax reference decided on merits; rehearing would amount to an impermissible review.

Section 151 of the Code of Civil Procedure, 1908 could not be used to condone delay and recall a tax reference already heard and answered on merits under section 256 of the Income-tax Act, 1961. The High Court distinguished cases where a reference is returned unanswered or dismissed for default, in which limited incidental power may support recall, from cases decided on merits, where rehearing would amount to an impermissible review. Absence of counsel and the asserted delay did not justify reopening the advisory decision. The petitions were held not maintainable and were dismissed.

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Issues: Whether petitions under section 151 of the Code of Civil Procedure, 1908 were maintainable to condone delay and recall the order answering the tax reference on merits, so as to restore the reference for rehearing.

Analysis: The reference had already been heard and answered in the absence of the assessee's counsel. The Court distinguished cases where a reference is returned unanswered or dismissed for default, in which limited incidental or ancillary power may permit recall, from a case where the reference has been decided on merits. It held that section 256 of the Income-tax Act, 1961 confers a special advisory jurisdiction of limited scope, and that recalling a merits-based answer would amount to an impermissible review. The Court also held that the absence of counsel and the asserted delay did not justify invoking section 151 of the Code of Civil Procedure, 1908 in these circumstances.

Conclusion: The petitions were not maintainable and were dismissed.

Ratio Decidendi: A High Court cannot invoke inherent or ancillary powers under section 151 of the Code of Civil Procedure, 1908 to recall and rehear a tax reference already answered on merits under section 256 of the Income-tax Act, 1961, because such recall would amount to an impermissible review of the advisory decision.

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