Hindustan Sports Club Limited Vs ITO (Delhi High Court)
Delhi High Court Dismisses Appeal Challenging ITAT’s Refusal to Recall Order
The Delhi High Court considered an appeal filed by Hindustan Sports Club Limited challenging a July 29, 2025, order from the Income Tax Appellate Tribunal (ITAT). The ITAT order had dismissed Miscellaneous Application (MA) No. 02/Del/2021, which was a rectification application filed under Section 254(2) of the Income Tax Act, 1961, seeking to recall and rehear the Tribunal’s original order dated October 31, 2019, related to Assessment Year (AY) 2005-06.
Grounds for the Rectification Application
The primary basis for the appellant’s rectification application was the contention that the Tribunal had failed to adjudicate Ground No. 1(a), which claimed the assessment order passed by the Assessing Officer (AO) on December 24, 2007, was made before the fixed hearing date of December 26, 2007. The appellant argued this violated the principles of natural justice. The application was also filed after six months from the date of the original order, with the appellant citing the Supreme Court’s Suo Motu Writ Petition (Civil) No.3 of 2020 regarding the extension of limitation during the Covid-19 pandemic.
ITAT’s Findings and Rationale
The Respondent/Revenue opposed the application, arguing there was no mistake apparent on record and that the scope of Section 254(2) is limited, preventing the Tribunal from reviewing its own order.
