2010 (2) TMI 53

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.... Act?" 2. The following additional questions of law have also been raised later and having regard to the importance of the said additional questions of law, they are also taken on file for a decision. "(1) Whether on the facts and in the circumstances of the case, the Tribunal was right in law in cancelling the penalty under section 271(1)(c) on the basis of a Miscellaneous Petition for rectification when the Tribunal has rejected a similar petition by order dated 21.8.2000, thus exceeding the jurisdiction u/s 254(2) of the Act which does not empower the Income Tax Appellate Tribunal to review its appellate order? (2) Whether on the facts and in the circumstances of the case, the Tribunal was justified in cancelling the penalty lev....

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....nt opportunity, the assessing officer quantified the penalty in a sum of Rs.2,21,320/-. That order was carried on to the Commissioner of Income Tax (Appeals) by the assessee and the levy of penalty was confirmed. As against the said order, an appeal was filed before the Tribunal and the same was also dismissed on 27.10.96. On the ground that a mistake apparent on the face of record had crept in, the assessee preferred a Miscellaneous Petition No.18/Mds/97. The Tribunal, by order dated 21.8.2000, dismissed the said application with the following observation: "We have considered the rival submissions and perused the records. In so far as it relates to the payment of royalty, this Tribunal has considered whether it is voluntary or involunta....

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....shall make such amendment if the mistake is brought to its notice by the assessee or the Assessing Officer: Provided that an amendment which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made under this sub-section unless the Appellate Tribunal has given notice to the assessee of its intention to do so and has allowed the assessee a reasonable opportunity of being heard: Provided further that any application filed by the assessee in this sub-section on or after the 1st day of October, 1998, shall be accompanied by a fee of fifty rupees." 8. By that provision, the appellate Tribunal is empowered to entertain an application for rectification on the g....