TaxTMI 
TaxTMI 
2002 (3) TMI 11
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....he facts giving rise to the instant appeal are that a survey was conducted in the premises of the assessee, namely, Champalal, the karta of a Hindu undivided family, under section 133A on August 18, 1979. The Income-tax Officer after investigation assessed the income of the assessee and made an addition of Rs.80,000 in the income for the assessment year 1978-79. The appeal against the said order of assessment was dismissed by the Appellate Assistant Commissioner. On further appeal, the Tribunal dismissed the same by order dated July 26, 1984. The respondent, assessee filed an application under section 254(2) of the Income-tax Act for rectification of mistake. It was, inter alia, pointed out in the rectification application that the appella....
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.... of the appeal can be ordered. The learned single judge without discussing the case law cited, allowed the writ petition by simply saying that sub-section (2) of section 254 does not empower the Tribunal to review its own order and recall its earlier order. The discussion of the learned single judge on the point is extracted as follows: "A bare reading of sub-section (2) of section 254 of the Act it appears that under the garb of rectification, the Income-tax Appellate Tribunal cannot exercise the power of review and recall the order whole hog. There are conflicting judgments of the various High Courts on this subject. Without going into the various authorities which have been cited before me, I only need to say that a bare reading of sub-....
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....e factual mistake is so apparent that it becomes necessary to correct the same, the Tribunal would be justified in not only correcting the said mistake by way of rectification but if the judgment has proceeded on the basis of that fact, it would be justified in recalling such order and posting for hearing. A Division Bench of the Madhya Pradesh High Court in CIT v. Mithalal Ashok Kumar [1986] 158 ITR 755, the Tribunal found apparent mistake from the record in its order while deciding the question as to whether the firm was genuine or not, accordingly the rectification was granted. On a challenge by the Revenue, the Division Bench held that while considering the application for rectification, the provisions of Order 47, rule I of the Civil....