Mistake apparent from record on non-following coordinate bench ruling led to recall under section 254(2).

Non-following of a co-ordinate bench decision in the assessee's own case was treated as a mistake apparent from the record, because the earlier bench had estimated the profit element at 6% whereas the impugned order had sustained estimation at 12.5%. On that basis, the Tribunal held that the order was amenable to rectification under section 254(2) of the Income-tax Act, 1961, and allowed the miscellaneous application by recalling the earlier order.

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Issues: Whether the Miscellaneous Application seeking recall of the earlier order could be allowed on the ground that non-following of a coordinate bench decision in the assessee's own case constituted a mistake apparent from the record under section 254(2) of the Income-tax Act, 1961.

Analysis: The Tribunal noted that, in similar facts, a co-ordinate bench in the assessee's own case had estimated the profit element at 6%, whereas the earlier order had sustained estimation at 12.5%. The failure to follow the earlier coordinate bench decision was treated as a mistake apparent from the record, making the order amenable to rectification under section 254(2).

Conclusion: The Miscellaneous Application was allowed and the earlier order was recalled.

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