Tribunal rectifies order, schedules fresh hearing on appeals to align with High Court precedent.

The Tribunal allowed the Revenue's Miscellaneous Applications seeking rectification/recalling of the order dated 01.07.2021, acknowledging the mistake in not considering the Jurisdictional High Court's decision. The Tribunal recalled the consolidated order and scheduled a fresh hearing for all appeals to be heard on merit, aligning with the binding precedent of the High Court. The final outcome was pronounced on 03 March 2022, setting a new hearing date to address the appeals afresh based on the High Court's decision and rectifying the earlier mistake.

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Issues:
Rectification/recalling of order dated 01.07.2021 in ITA No.505 to 526/SRT/2018 based on the consideration of decisions by different High Courts.

Analysis:

1. Issue of Consideration of High Court Decisions:
The Revenue filed twenty-two Miscellaneous Applications seeking rectification/recalling of the order dated 01.07.2021, arguing that the Tribunal erred in not considering the decision of the Jurisdictional High Court in the case of Rajesh Kourani vs. Union of India. The Revenue contended that the Tribunal's decision was based on the Karnataka High Court's ruling in the case of Fatheraj Singhvi vs. Union of India, which was not in line with the binding decision of the Jurisdictional High Court. The Revenue emphasized that the non-consideration of the Jurisdictional High Court's decision constituted a mistake apparent in the order, citing precedents such as Union of India vs. Kamalakshi Finance Corporation and CIT vs. Ralson Industries Limited. The Revenue argued that the decision of the Jurisdictional High Court should prevail over the Tribunal's decision due to territorial jurisdiction.

2. Assessee's Defense and High Court Precedents:
On the other hand, the Assessee's representative supported the order dated 01.07.2021, highlighting that the Jurisdictional High Court had not considered the Karnataka High Court's decision in Fatheraj Singhvi vs. Union of India. The Assessee's representative argued that the Karnataka High Court had ruled that the provision of section 234E of the Act was prospective, not retrospective. In response, the Revenue reiterated that the Jurisdictional High Court's decision in Rajesh Kourani vs. Union of India was binding and dissenting findings were present in that case.

3. Tribunal's Decision and Recall of Order:
After considering the arguments from both parties, the Tribunal acknowledged that its order dated 01.07.2021 was contrary to the findings of the Jurisdictional High Court. The Tribunal recognized the mistake in not considering the material finding of the High Court and concluded that the decision needed to be recalled. Consequently, the Tribunal recalled the consolidated order dated 01.07.2021 and scheduled a fresh hearing for all the appeals on 30.05.2022 to be heard on merit. The Tribunal allowed all the Miscellaneous Applications filed by the Revenue, emphasizing the need to align with the binding precedent of the Jurisdictional High Court.

4. Final Outcome:
The Tribunal pronounced the order on 03 March 2022, allowing the Revenue's Miscellaneous Applications and setting a new hearing date to address the appeals afresh based on the considerations of the Jurisdictional High Court's decision and rectifying the mistake apparent in the earlier order.

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