Case Law Details
CIT Vs Shree Ganesh Ventures (Madras High Court)
Conclusion: Concerning the scope of section 254, ignoring the material already on record on the part of Tribunal was a mistake apparent on the face of the record. Thus, Tribunal had rightly recalled its order and rectified the mistake and it had rightly set aside the additions under Section 68.
Held: Assessee moved a Miscellaneous Application pointing out about the identity and genuineness of the creditors and that there was also material on record including PAN Numbers, the Invoices from those creditors, etc. but, Tribunal failed to take note of the same while passing the order and therefore, the said order deserved to be revoked, reviewed and rectified under Section 254 and fresh order had to be passed on the same. Tribunal accepted the mistake on its part and recalled the order. It granted the requisite relief to assessee by setting aside the additions under section 68. It was held that the powers of assessment vested with all the three Authorities including the Appellate Authorities were co-extensive in law and there was no prohibition in law in producing the relevant materials before the permission of the second Appellate Authority viz., the Tribunal. Since Tribunal found that the said material was already on the record, when it passed the order, there was no doubt that the material was produced before the tribunal in a doubtful manner. Concerning the scope of section 254, ignoring the material already on record on the part of Tribunal was a mistake apparent on the face of the record. Thus, Tribunal had rightly recalled its order and rectified the mistake and it had rightly set aside the additions under Section 68.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
This Appeal was admitted on the following questions of law by this Court on 20.7.2020:-
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