Remand directions in tax appeal misread where earlier year appeals were pending; order recalled u/s254(2), rehearing set

The dominant issue was whether the Tribunal's earlier order contained a mistake apparent from the record warranting recall under s. 254(2) of the Income-tax Act. The ITAT held that the co-ordinate bench had remanded the appeal to the CIT(A) with a direction to apply the outcome of the assessee's appeals for AYs 2012-13 and 2013-14, erroneously assuming those appeals were pending before the CIT(A), whereas they were actually pending before another ITAT bench at the relevant time. This misconception constituted an apparent mistake on record; consequently, the prior ITAT order for AY 2014-15 was recalled and the Registry was directed to refix the appeal for early hearing.

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The Assessee filed a Miscellaneous Application seeking recall of an earlier ITAT order in ITA No.1681/Del/2018 (Assessment Year 2014-15). In that order, the Co-ordinate Bench had set aside the CIT(A)'s decision and remanded the matter to the CIT(A) for fresh adjudication, stating that similar issues for Assessment Years 2012-13 and 2013-14 were "pending before the First Appellate Authority" and directing consideration of the appellate outcome for those years. The Assessee contended this factual premise was incorrect: the appeals for Assessment Years 2012-13 and 2013-14 were not pending before the CIT(A) but before the "F" Bench of the Tribunal at the relevant time, and this was allegedly brought to the Bench's notice. The Department submitted the issue required factual verification. On review, the Tribunal held the Co-ordinate Bench had "misconceived" the forum of pendency, constituting "a mistake apparent from record." Consequently, it recalled the earlier order and directed the registry to fix the Assessee's appeal for hearing at the earliest.

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