The Mumbai Bench of the Income Tax Appellate Tribunal ( ITAT ) in Cromption Greaves Limited vs. CIT recalled an order of the Tribunal which was passed beyond the period of 90 days from the date of hearing.
The applicant had filed a Miscellaneous Application seeking to recall an order of the Tribunal on the ground that the tribunal passed the order beyond the period of 90 days from the hearing. The applicant pleaded before the Bench to recall the order and conduct fresh hearings before the Regular Bench in view of Rule 34(5) of the Income-Tax (Appellate Tribunal) Rules, 1963 read with section 254(2) of the Income Tax Act, 1961.
The Departmental Representative (D.R) submitted that the Tribunal had very limited powers under Section 254(2) of the Income Tax Act, 1961. He objected to the recalling of the order.
The bench comprising of Judicial Member Mahavir Singh & Accountant Member Ramit Kochar relied on the decision of the ITAT in the case of G. Shoe Exports vs. ACIT wherein it was held that unexplained delay in the pronouncement of the order renders it vulnerable. It was held that such judgments were bad in law and were to be set aside.
“We allow this MA filed by the assessee on this short ground of pronouncing of the order beyond a period of 90 days, keeping in view Rule 34(5) of Income Tax (Appellate Tribunal) Rule, 1963 read with Section 254(2) of the Act. The order of the tribunal in ITA no. 1994/Mum/2013 dated 01-02-2016 for AY 2007-08 stood recalled. The Registry is directed to place the appeal in ITA no. 1994/Mum/2013 before Regular Bench for a fresh hearing for which the date shall be notified to both the parties in advance by sending notices. We order accordingly.” observed the bench.
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