Case Law Details
Cromption Greaves Limited Vs. CIT (ITAT Mumbai)
This M.A. has been filed by the assessee seeking recall of the order of the tribunal in ITA no. 1994/Mum/2013 dated 01-02-2016 . The learned counsel for the assessee pressed only one ground before the Bench that the tribunal order dated 01-02-2016 was passed beyond period of 90 days from the date of hearing and hence the same needed to be recalled for conducting fresh hearings before the Regular Bench.
Hon’ble jurisdictional High Court in the case of Otters Club v. DIT (E), in Writ Petition No. 2889 of 2016 vide order dated 12.01.2017 has held that the tribunal cannot pass the order beyond three months of the conclusion of the hearing of the appeal.
In this case, admittedly the order was passed beyond three months. No reason whatsoever for the delay has been recorded. As held by the Hon’ble jurisdictional High Court above, such delay is incurable and even administrative clearance cannot cure the same.
As held by the Hon’ble Apex Court in the case of Asstt. CIT v. Saurashtra Kutch Stock Exchange Ltd.[2008] 305 ITR 227/173 Taxman 322,any order of the tribunal without considering the decision of Hon’ble jurisdictional High Court or the Hon’ble Apex Court judgement even if not bought to the notice of the tribunal, results in the order of the tribunal being liable for rectification upon filing of an application under section 254(2) of the Act for containing mistake apparent from the record. Admittedly, in this case, the impugned common tribunal orders are not in accordance with the above two jurisdictional High Court’s decision which clearly mandate that the order of the tribunal should be pronounced within a period of three months of the hearing of the appeal. The Income Tax Appellate Tribunal Rule 34(5) as mentioned hereinabove also provides the same. Hence, in accordance with the ratio of the above Hon’ble High Court and Hon’ble Supreme Court judgements, such decisions rendered after 3 months need to be recalled and heard afresh as they are liable for mistake apparent from record. Accordingly, we recall the afore-said common orders of the Tribunal due to delay beyond three months in pronouncing the order in accordance with the Hon’ble jurisdictional High Court decision as above. The registry is directed to fix the appeals in normal course for hearing.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
