2018 (3) TMI 1456

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....fied by the assessee : i. Observations that actual use of loan by the appellant after borrowing it is not verified by the lower tax authorities. ii. Observations that loan was taken from sister concern as a stop-gap arrangement till the loan is disbursed by the financial institution / bank is not verified by the lower tax authorities. iii. Applicability of jurisdictional High Court judgment of Comfund Financial Services has not been appreciated while passing the order. On the basis of the above, the assessee has prayed to - a. Rectify the mistakes apparent on record of order dt.13.09.2017 and grant the relief prayed for in the appeal by passing appropriate order b. In the alternative the order....

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....udgment is correct or not. An error apparent on the record means an error which strikes one on mere looking and does not need a long drawn out process of reasoning on points on which there may be conceivably two opinions. The error should not require any extraneous matter to show its incorrectness. To put it differently, it should be so manifest and clear that no Court would permit it to remain on record. If the view accepted by the Court in the original judgment is one of possible views, the case cannot be said to be covered by an error apparent on the face of the record. Sec. 254(2) specifically empowers the Tribunal to amend at any time within four years from the date of an order, any order passed by it under s. 254(1) with a view to rec....

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.... by the Tribunal. This fundamental principle has nothing to do with the inherent power of the Tribunal. If prejudice is resulted to the party, which prejudice is attributable to the Tribunal's mistake, error or omission and which error is a manifest error, then the Tribunal would be justified in rectifying its mistake. Rectification can be made only when a glaring mistake of fact or law committed by the officer passing the order becomes apparent from the record. The rectification is not possible if the question is debatable. A point which was not examined on facts or in law cannot be dealt with as a mistake apparent from the record. No error can be said to be apparent on the face of the record if it is not manifest or self-evident and requi....

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....322 : (1997) 226 ITR 296, 302 (P&H), Bata India Ltd. vs. Dy. CIT (1996) 217 ITR 871 (Cal) and CIT vs. Prahlad Rai Todi (2001) 171 CTR (Gau) 537 : (2001) 251 ITR 833 (Gau). 15. Hon apex court in the case of T S Balaram ITO vs Volkart Brothers and ors 82 ITR 50 had held in relation to the powers of an ITO under section 154 of thw Act as under: " From what has been said above, it is clear that the question whether s. 17(1) of the Indian IT Act, 1922, was applicable to the case of the first respondent is not free from doubt. Therefore, the ITO was not justified in thinking that on that question there can be no two opinions. It was not open to the ITO to go into the true scope of the relevant provisions of the Act in a proceedi....

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....there was a mistake apparent from the record of the assessments of the first respondent." Rectificatory powers vested on the Tribunal under section 254(2) is also only on a mistake apparent from the record and therefore the law as enunciated by the Hon Apex court will fairly apply. Seen from the exposition of law on the subject given above, this Tribunal cannot be a reviewing authority. We find that this Tribunal had considered all the aspects of the case before giving its finding. What the assessee seeks now is a review of the order. Assessee has not been able to show any mistake in the order of the Tribunal, much less any mistake apparent on record. 05. Moreover, the stand of the assessee is this that it was stop gap arrangement ....