Sales Tax Tribunal Can Rectify Glaring Errors Ignoring Precedents and Jurisdictional Lapses u/s 62: Bombay HC [Read Order]

The case arose after the Deputy Commissioner (Administration) revised an appellate order of the Deputy Commissioner (Appeals) and raised an additional demand of Rs. 1,40,070 against Mardia Steel Ltd.

The Tribunal initially remanded the matter, but the assessee later filed a rectification application under Section 62, arguing that the Tribunal had overlooked binding judgments and failed to recognize that the Deputy Commissioner (Administration) lacked jurisdiction. The Tribunal allowed rectification, set aside the revisional order, and restored the original assessment.

How to Audit Public Charitable Trusts under the Income Tax Act Click Here

The revenue counsel argued that Section 62 confers only limited powers of rectification, meant for correcting mistakes apparent on the face of the record. The counsel also argued that this case involved interpretation and could not be rectified through Section 62.

The Division Bench comprising Justice M. S.Sonak and Justice Advait M. Sethna observed that the Tribunal had indeed committed a glaring error by overlooking binding precedents and by not addressing the lack of jurisdiction of the Deputy Commissioner (Administration).

Know Practical Aspects of Tax Planning, Click Here

The court explained that such an error went to the root of the matter and was apparent on the record. It pointed out that rectification in these circumstances was within the Tribunal’s powers under Section 62.

The court held that the Tribunal was justified in allowing rectification, and it upheld the order setting aside the revisional action. The question was answered in favour of the assessee and against the Revenue.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates