Anudeep Nimmatoori L.R. s/o. late Raja Babu Nimmatoori Vs ACIT (ITAT Hyderabad)
The assessee filed Miscellaneous Application No.12/Hyd./2025 under Section 254(2) of the Income Tax Act seeking recall of the Tribunal’s common order dated 14.08.2024 in ITA No.621/Hyd./2022 for the assessment year 2018–19. After hearing both parties and examining the application, the Tribunal found that the assessee failed to demonstrate any prima facie “mistake apparent on record.” The Tribunal noted that the issue raised had already been thoroughly discussed in paragraph 108 of the original order, based on facts presented by the Assessing Officer and arguments made by the assessee’s counsel. The Tribunal held that the assessee was effectively seeking a review of the earlier decision, which is not permissible under Section 254(2). It reiterated that the scope of rectification is limited to correcting mistakes that are obvious, ex-facie, and not open to debate, such as clerical, grammatical, or arithmetical errors. Any correction that requires re-arguing or re-appraising facts falls outside this provision. The Tribunal also referred to the Supreme Court’s ruling in CIT v. Reliance Telecom Ltd., which clarified that if a party believes the Tribunal’s findings are incorrect, the proper remedy is to approach the High Court rather than seek review under the guise of rectification. Finding no merit in the application, the Tribunal dismissed the assessee’s Miscellaneous Application on 20.05.2025.
