No Authority given to ITAT to recall an Order passed u/s 254(2) of Income Tax Act after expiry of four years: Delhi HC [Read Order]

The Delhi High Court held that the Income Tax Appellate Tribunal (ITAT) had no power to recall an order in the exercise of power under section 254(2) of the Income Tax Act, 1961 after the expiry of four years. 

The revenue filed an income tax appeal to recall the order passed by the Income Tax Appellate Tribunal. 

Rohan Khare, the counsel for the respondent-assessee ie, L.G Electronics contended that the issue involved in the present appeal was already decided in the case of Lachman Dass Bhatia Vs. Assistant Commissioner of Income Tax. 

Further submitted that the Income Tax Appellate Tribunal (ITAT) had no power to recall an order in exercise of power under Section 254(2) of the Income Tax Act and, secondly, assuming the tribunal had the power to recall, the facts and circumstances of the case at hand do not warrant a recall. 

Sanjay Kumar, Easha Kadian, and Hemlata Rawat, the counsels for the revenue contended that the Appellate Tribunal may, at any time within four years from the date of the order, to rectify any mistake apparent from the record, amend any order and shall make such amendment if the mistake is brought to its notice by the assessee or the Assessing Officer (AO). 

The two-member bench comprising Rajiv Shakdher and Girish Kathpalia closed the appeal and granted liberty to the appellant/revenue to file a writ petition, given the judgment of Lachman Dass Bhatia Vs. Assistant Commissioner of Income Tax. 

Read more : Rectification of Order is valid when Miscellaneous application u/s 254(2) was filed within Four Years: Jharkhand HC

To Read the full text of the Order CLICK HERE

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