Case Law Details
Advocate Akhilesh Kumar Sah
JCIT Vs M/s. Flipkart India Private Limited (ITAT Bangalore)
Review of the order of the Tribunal on a possible hidden transaction not permissible: Flipkart India Private Ltd case
ITAT does not have power to review its own order. Recently, in JCIT vs. Flipkart India Private Ltd [M.P. No. 337/Bang/2018 (In ITA No.202/Bang/2018) (AY. 2015-16) (Appeal by Assessee) & (ITA No. 693/Bang/2018) (AY. 2015-16) (Appeal by Revenue), decided on 24-04-2019], it was observed that the power of the Tribunal under section 254(2) of the Income Tax Act, 1961 (for short ‘the Act’) is only to rectify mistakes apparent on the face of the record. The Tribunal does not have power to review its own orders. Power of review is not an inherent power but must be conferred by law either specifically or by necessary implication. Courts have consistently held that review proceedings imply those proceedings where a party, as of right, can apply for reconsideration of the matter already decided upon after a fresh hearing on the merits of the controversy between the parties and that such a remedy is available only if provided by the statute. The law on powers of Tribunal is well settled and is governed by the ratio laid down by the Hon’ble Supreme Court, on scope of powers under section 154 of the Act, which is akin to Sec.254(2) of the Act, in ITO vs. Volkart Brothers [(1971) 82 ITR 50 (SC)], as follows:
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