Tribunal Power to Rectify does not Include Power to Review: ITAT [Read Order]

The Income Tax Appellate Tribunal ( ITAT ), Cochin bench has held that the Tribunal’s power to rectify the order does not give it the power to review its own order.

In the instant case, the assessing officer completed assessment against the assessee by holding that there was for a total consideration of Rs.99,90,000 instead of Rs.18.30 lakh disclosed in the sale deed.

On appeal, the Tribunal reversed the order by holding that the documented value at Rs.18.30 lakh is to be adopted for the purpose of computation of long term capital gains instead of Rs.99,90,000 taken by the Assessing Officer.

The Revenue filed a rectification application before the Tribunal by stating that the apparent mistake in the order of the ITAT is that the Tribunal while passing the impugned order, did not consider the ITAT’s order in the case of the purchaser viz., St.Antony’s Timber Depot, wherein the Tribunal confirmed the purchase price of the impugned property at Rs.99.90 lakh instead of 18.30 lakh is disclosed in the sale deed dated 24.04.2007.

After hearing both the sides, the Tribunal noted that the Tribunal was of the opinion that the finding of the A.O. is incorrect. The Tribunal stated that the seized material does not indicate purchase price at Rs.99.90 lakh. It was further stated by the Tribunal that the documents are certain noting of the purchaser and not agreement for sale of the impugned property as alleged in para 10 of the impugned assessment order. The Tribunal also found that the statement recorded under section 132(4) from Shri Babu John, Managing Partner of the firm M/s.St.Antony’s Timber Depot (purchaser of the property) does not mention anywhere that the assessee’s name or its Directors name.

“A power of review has to be statutorily conferred. It cannot be inferred. As this power has not been conferred on the Tribunal, under the Act, it does not have the power of review. As mentioned earlier, the power that has been given under section 254 is right of rectification of mistakes. As a power to rectify a mistake does not include a power to review, all that the Tribunal can do is to amend its order with a view to rectify any error apparent from the record. Unless there are manifest errors which are obvious, clear and self-evident, the Tribunal cannot recall its previous order in an attempt to rewrite it. Under the garb of rectification, the Tribunal cannot exercise the power of recall and review its earlier order.”