Law:

Section:

Section 254 of the Income-tax Act, 1961 - Appellate Tribunal - Powers of - Assessment year 1993-94 - Whether application of principles laid down by superior courts to facts of case before Tribunal on erroneous understanding of such principles; recording of an erroneous finding by Tribunal based on facts on record; and arriving at a conclusion on erroneous application of provisions of law to facts of case, etc., can be held to be 'a mistake apparent from record' warranting any rectification by Tribunal in exercise of its power under section 254(2), or by reconsidering application of principles of superior courts to facts of case or by reconsidering its findings recorded, or by reconsidering application of relevant provisions of law to facts of case - Held, no - Whether such an exercise of power under section 254(2) amounts to review of Tribunal's earlier order on merit but not rectification of mistakes apparent from record and such review is not permissible under section 254(2) - Held, yes FACTS The assessee-company incurred certain expenditure in respect of issuance of shares with a view to increase its share capital and claimed deduction of same under section 37(1) as revenue expenditure. The Assessing Officer allowed only one-tenth of the said expenditure and disallowed the balance holding same to be capital in nature. On appeal, the Commissioner (Appeals) upheld the order of the Assessing Officer. On second appeal, the Tribunal also confirmed the order of the Commissioner (Appeals). However, subsequently, on applications filed by the assessee under section 254(2), the Tribunal reversed its finding and allowed the entire expenditure holding same to be revenue in nature. The revenue had filed the instant appeal challenging the correctness of the Tribunal's order passed in exercise of its power under section 254(2). HELD It was not the case of the assessee before the Tribunal in the miscellaneous petition filed under section 254(2) that the Tribunal, while disposing of its appeal, did not consider any of the decisions cited and relied upon by the assessee nor was it the case of the assessee that the Tribunal did not consider any of the facts on record…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492