GLIMPSE OF A LATEST VERDICT* Commissioner of Income Tax Vs. Reliance Telecom Ltd & Anr. Civil Appeal No. 7110 & 7111 of 2021 (SC) – Dated: 03.12.2021

*GLIMPSE OF A LATEST VERDICT*
Commissioner of Income Tax Vs. Reliance Telecom Ltd & Anr.
Civil Appeal No. 7110 & 7111 of 2021 (SC) – Dated: 03.12.2021

*Hon’ble Mr. Justice M.R. Shah & Hon’ble Justice B.V. Nagarathna* in the matter relating to *“Appeal to Appellate Tribunal – Power to Rectify Mistake – Section 254 of the Income Tax Act”* allowed the appeals and further observed and held as follows:

i) In exercise of powers under Section 254(2) of the Income Tax Act, the Appellate Tribunal may amend any order passed by it under sub-section (1) of Section 254 with a view to rectify any mistake apparent from the record only. This is akin to Order 47 Rule 1 of CPC.

ii) The Appellate Tribunal had passed a detailed order under Section 254(2) by re-hearing the matter afresh on merits. The said order passed under Section 254(2) is beyond the scope and ambit of the Appellate Tribunal conferred under Section 254(2). Therefore, the Order is unsustainable in Law.

iii) If the Orders passed by the Income Tax Appellate Tribunal is erroneous on merits, the remedy available to the assessee was to prefer an appeal before the High Court.