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Section 254(2) of the Income-tax Act, 1961 - Appellate Tribunal - Orders of - Whether under section 254(2) Tribunal could exercise power of review and recall its order whole hog - held, no Facts Under section 133A a survey was conducted of the premises of the assessee and various documents and papers were seized therefrom. The ITO made additions in the assessed income for the assessment year 1978-79. The assessee appealed to the AAC and then to the Tribunal but both of them rejected the appeals. Thereafter, the assessee moved an application under section 254(2) for rectification of the mistake. The Tribunal allowed the application, admitting that there was a mistake of facts in the original order and thereby the conclusion drawn was wrong. It further observed that since the other member was not party to the original order, the order was recalled and the matter was ordered to be disposed afresh. On writ: Held From a bare reading of sub-section (2) of section 254 it appears that under the garb of rectification the Tribunal cannot exercise the power of review and recall the order whole hog. Therefore, the petition was allowed and the case remanded back to the Tribunal to decide the rectification application in accordance with law. B.R. Arora for the Petitioner. Rajendra Mehta for the Respondent. JUDGMENT 1. The petitioner by this writ petition has challenged the order dated 15-10-1985 (Annexure 3) on the ground that the Tribunal, Jaipur Bench (respondent No. 1), had no jurisdiction under section 254(2) of the Income-tax Act, 1961 ('the Act') to review its own order. 2. The respondent No. 2 is the karta of an HUF. A survey was con ducted of the premises of the assessee under section 133A on 18-8-1979 and a number of documents and papers were siezed in the business premises as well as residence of the assessee. The ITO, Special Investigation, Circle-I, Jodhpur (the petitioner), assessed the respondent No. 2 and made addition of Rs. 80,000 in the income for the assessment year 1978-79. The respondent No. 2 preferred an appeal before the AAC, Jodhpur who dismissed the appeal filed by the respondent…

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