Tribunal’s Power to Review does not include reappreciation of facts and modification of Order: ITAT [Read Order]

Tribunal - Power to Review - reappreciation of facts and modification of Order - ITAT - Taxscan

The Income Tax Appellate Tribunal (ITAT), Hyderabad bench has recently held that the Tribunal’s power to review its own order under section 254 of the Income Tax Act, 1961 would not cover the power to reappreciate the facts and evidences and to modify the order.

The assessee filed an application before the Tribunal to rectify the Tribunal’s order under section 254(2) of the Act by contending that certain relevant facts and evidences were not considered by the Tribunal while passing the impugned order.

The assessee further contended that the Tribunal has not considered some contentions of the assessee and therefore, there is a mistake apparent from record.

The division bench of the Tribunal comprising Accountant Member Laxmi Prasad Sahu and Judicial Member P. Madhavi Devi overruled the above contentions and held that the order cannot be reviewed on the basis of these grounds.

“However, we find that reappreciation of facts and modification of the Tribunal’s order is nothing but review of ITAT order. U/s 254(2) of the I T Act, ITAT can only rectify the alleged mistakes which are apparent from record and cannot reappreciate the evidence and review its findings as held by the Hon’ble Bombay High Court in the case of CIT vs. Ramesh Electric & Trading Co. (1993) 203 ITR 497 (Bom.). Therefore, this M.A. is not maintainable and is accordingly rejected,” the Tribunal said.

Subscribe Taxscan Premium to view the Judgment

Support our journalism by subscribing to Taxscan AdFree. We welcome your comments at info@taxscan.in

taxscan-loader