Tribunal can issue direction beyond the scope of the appeal for correction of error – Delhi HC

Insilco Limited Vs CIT (Delhi High Court)- Honourable Tribunal has rightly given the aforesaid directions, which are nothing but pointing out what the AO was required to do under the law. This issue was very much before the Tribunal and the Tribunal has given these directions to give complete effect to the orders passed in quantum proceedings. It is trite law that nobody can be allowed to enrich itself unjustly and in the matter of calculation once an error is found that can always be directed to be corrected.

Therefore, we do not agree with the submission of the learned counsel for the appellant that the Tribunal has exceeded its jurisdiction. Various judgements cited by the assessee on the premise that the Tribunal has set up a new case are not applicable, as no such new case has been set up by the Tribunal.

IN THE HIGH COURT OF DELHI AT NEW DELHI

ITA No. 179 of 2009

RESERVED ON: MAY 05, 2011

PRONOUNCED On: JULY 11, 2011

INSILCO LIMITED VS COMMISSIONER OF INCOME

A.K. SIKRI, J.

1. This appeal was admitted on the following questions of law:

“1. Whether the Tribunal was correct in law in issuing directions to the AO to recalculate the amount of refund, which refund had been allowed to the assessee on the basis

of an order passed under Section 254/143(3) dated 25.02.2004/28.06.2004, which order had become final and was also not the subject matter of appeal before it?

2. Whether the directions given in order in para 20 were necessary and did not amount to setting up a new case, which case was not set up in the order made u/s 154 of the Act and was the subject matter of appeal?”