Brief Facts
Assessee preferred an appeal before the Tribunal against an order passed u/s 264 of the Income Tax Act 1961. The Tribunal passed an order on merits in this appeal overlooking the fact that there is no right of appeal provided under the statute against the order passed u/s. 264 of the Act.
Court’s Order
1. There is no right of appeal provided under the statute against the order passed u/s. 264 of the Act. In fact a party to litigation can move to an appropriate forum only when the statute provides for such a right.
2. As can be noticed from section 253 of the Income-tax Act, 1961 an order passed by the Commissioner of Income Tax (‘CIT’) u/s. 264 of the Act is not appealable before the Appellate Tribunal.
3. However, this issue escaped the attention of the bench; while passing the order on 16.01.2015 the bench entertained the appeal and disposed of the issue/s on merits.
4. Since entertaining the appeal against the order passed u/s. 264 of the Act is a mistake apparent from record, in exercise of the powers vested in us u/s. 254(2) of the Act, the bench hereby recalls the order dated 16.01.2015; and the appeal filed by the assessee deserves to be dismissed as not admitted, since there is no statutory right to file an appeal against the order passed u/s. 264 of the Act.
(Analysed by our team member CA Amit Handa)
