Law: Income Tax Act, 1961

Section: 254,254(2)

(a) Income-tax--Appeal to Appellate Tribunal---Writ---Powers of Tribunal---Power of rectification--Tribunal cannot recall its entire order and rehear appeal--­Question which is debatable ---Power of rectification cannot be exercised --­Order of Tribunal setting aside block assessment---Erroneous observation in order that there could be no separate assessment in respect of a particular year comprised in block period---Entire order could not be recalled ---No appeal lay from such order and even if it did the order could be quashed in writ proceedings---Indian Income Tax Act, 1961, S.254. Absolute obliteration of its earlier order is not within the jurisdiction of the Tribunal. It cannot totally recall its order under section 254(2) of the Income Tax Act, 1961, and proceed to rehear the matter on de novo arguments. The words of the said subsection refer to amendment or rectification and not a total recall. Invocation of section 254(2) is not proper where the matter needs long drawn arguments. The Tribunal had set aside a block assessment made under Chapter XIV-B by its order, dated April 22, 1998. After the Tribunal passed its order in April, 1998 an Explanation was added to the Income-tax Act in Chapter XIV-B to section 158BA. By that Explanation, regular assessments for all years in the block period are also required to be made. In regard to the regular assessment for one particular assessment year in the block period of the same assessee, an earlier writ was filed and a had been delivered. In that it had been observed that these would be a block assessment for all the years in question but in addition thereto there would be also regular assessments for the separate years included in the block period. A miscellaneous application under section 254(2) had been made by the Revenue subsequent to the introduction of the amendment but prior 4o the delivery of the . The Tribunal passed an order thereon on June 1, 1999, recalling its earlier order. On a writ petition to quash the order, dated June 1, 1999: Held, that the Tribunal's order of April, 1998, in so far as the ordering portion was concerned, was in perfect accordance with the added Explanation and the earlier…

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