Tribunal rejects application to recall order under Income-tax Act

The Tribunal dismissed all miscellaneous applications filed by the assessee seeking to recall the order under section 254(2) of the Income-tax Act, 1961 for the A.Y. 2007-08. The Tribunal held that once rectification under section 254(2) was completed and merged with the original order passed under section 254(1), no further application for rectification was permissible. Citing decisions of the Hon'ble Orissa High Court and Madras High Court, the Tribunal concluded that the assessee's application was not maintainable.

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Issues:
1. Recalling the order of the Tribunal dated 28.04.2021 passed in M.A. Nos. 326 to 328/Ahd/2019 in ITA No. 1408 to 1410/Ahd/2017 and M.A. Nos. 349&350/Ahd/2019 in ITA No. 1407&1411/Ahd/2017 for the A.Y. 2007-08.
2. Permissibility of recalling the order under section 254(2) of the Income-tax Act, 1961.
3. Interpretation of the applicability of section 254(2) in rectifying mistakes apparent from the record in the order passed under section 254(1).

Issue 1: Recalling the Tribunal's Order
The assessee sought to recall the Tribunal's order dated 28.04.2021 passed in various M.A. applications for the A.Y. 2007-08. The counsel for the assessee argued for the rectification of the order, but the question arose whether the order could be recalled under section 254(2) of the Income-tax Act, 1961. The Tribunal noted that all the matters were similar and heard analogously for convenience.

Issue 2: Permissibility of Recalling Order under Section 254(2)
The Ld. DR contended that the order could only be recalled under section 254(1) and rectification of rectification was impermissible, citing the decision of the Hon'ble Orissa High Court. The Tribunal observed that the rectification sought must be apparent from the record in an order passed under section 254(1) to attract the applicability of section 254(2).

Issue 3: Interpretation of Section 254(2) Applicability
Referring to the decisions of the Hon'ble Orissa High Court and Madras High Court, the Tribunal held that the rectification application under section 254(2) was not permissible. The Madras High Court's observation emphasized that once rectification under section 254(2) was done and merged with the original order passed under section 254(1), no further application for rectification was maintainable. The Tribunal, following these decisions, dismissed the assessee's application as not maintainable.

In conclusion, the Tribunal dismissed all miscellaneous applications filed by the assessee after considering the statutory provisions under Section 254(2) and the interpretations provided by the Hon'ble Orissa High Court and Madras High Court. The order was pronounced in open court on 20/07/2021.

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