Income Tax - Rectification of Mistake - proceedings have limited scope - High Court
A Revenue application for rectification of mistake was dismissed by the ITAT. The aggrieved Revenue went in writ petition to the High Court.
The High Court held that these proceedings have limited scope;that in these proceedings the Tribunal cannot reopen the findings on factual matters and which according to it are conclusive. That would require the Tribunal to go behind its order and consider its legality and validity. That can be done if the findings are questioned in a distinct proceeding.
The High Court found that not only did the Revenue request the Tribunal to go behind its order and correct it in the garb of pointing out the mistakes and terming them as apparent. But, what essentially the Revenue was projecting was that the order passed by the Tribunal was erroneous. That it contains certain factual errors; if the Tribunal concludes that some point or issue which may be very debatable, but was not raised or argued before the Tribunal, then, in a limited power it cannot take note of the grievance of the Revenue. That would require it to conduct an exercise of going behind the entire order and record and find out whether it omitted from consideration certain vital factual material or statement or figures therein. This course was clearly impermissible; the discretionary and equitable jurisdiction under Article 226 of the Constitution of India is, therefore, not available to question the order passed.