Law: Income Tax Act, 1961

Section: 154

Section 154 of the Income-tax Act, 1961 [Corresponding to section 35 of the Indian Income-tax Act, 1922] - Rectification of mistakes - Apparent from records - Assessee filed application under section 35 of 1922 Act for rectification of mistakes - By time said application came up for consideration, composition of Tribunal had changed - Members hearing application, therefore, sent records to members who had passed original order and after eleciting opinion of said members, passed orders giving effect to such opinion - Whether Tribunal had abdicated its functions and did not pass any judicial order - Held, yes - Whether, therefore, order in question was liable to be quashed - Held, yes FACTS The assessee made an application under section 35 of the 1922 Act for rectification of mistake. By the time the application under section 35 of the 1922 Act came up for consideration, the composition of the Tribunal had changed. The members composing the Tribunal which heard that petition had not dealt with the case earlier. Therefore, they sent the records to the members who sat on the Bench when that case was originally heard, elicited their opinion and passed orders giving effect to such opinion. On writ petition : HELD On a perusal of the order of the Tribunal it was quite clear that it did not discover any mistake, much less an apparent mistake, in the earlier order passed by it. The Tribunal appeared to have adopted a very curious procedure. The Tribunal had abdicated its functions. It did not pass any judicial order. Therefore, the order in question was quashed. But, it was open to the Tribunal to re-examine the matter and find out whether there was any apparent mistake in the earlier order passed by it. Note: The case has been decided in favour of the assessee. JUDGMENT On a perusal of the order of the Tribunal it is quite clear that it did not discover any mistake,…

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