Pr. Commissioner Of Income Tax - 4 v. Qmax Synthetics Pvt. Ltd

Digitally signedJITENDRASHANKARby JITENDRASHANKARNIJASURENIJASUREDate: 2021.09.1811:50:32 +0530 416-wp-852-2020.doc jsn IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO. 852 OF 2020 Pr. Commissioner of Income Tax - 4 …Petitioner Versus Qmax Synthetics Pvt. Ltd. …Respondents ---------- Mr. Suresh Kumar for the Petitioner. Mr. Shashi Bekal i/b. Mint and Confreres for Respondents. ---------- CORAM :K.R. SHRIRAM & R.I. CHAGLA, JJ. DATE : 13 SEPTEMBER, 2021. ORDER : 1.The department is impugning the order passed by theIncome Tax Appellate Tribunal pronounced on 31st July, 2019rejecting its Miscellaneous Application to recall an order ofwithdrawal passed on 3rd August, 2018. 2.Based on circular No.3 of 2018 dated 11th July, 2018department had withdrawn the Appeal that was pending before theTribunal. That circular came to be amended on 20th August, 2018, 416-wp-852-2020.doc wherein two new exceptions were included. The department therefore,filed the Miscellaneous Application to state that the amended circularwill prevail and therefore, the order of withdrawal of Appeal shouldbe recalled and Appeal should be restored. 3. This was rejected on the ground that the newly added exceptions were not part of the circular when the Appeals werewithdrawn and therefore, they could not be considered at that time.Accordingly, there can be no mistake apparent from record in theorder within the meaning of Section 254 (2) of the Income Tax Act,1961. 4.Aggrieved by this order, the department has filed thisWrit Petition. We have perused the impugned order and find no reasonto interfere. Section 254 (2) reads as under:- “…... (2) The Appellate Tribunal may, at any time withinfour years from the date of the order, with a view torectifying any mistake apparent from the record,amend any order passed by it under sub- section(1), and shall make such amendment if the mistakeis brought to its notice by the assessee or theAssessing Officer: Provided that an amendment which has the effect of enhancing an assessment orreducing a refund or otherwise increasing theliability of the assessee, shall not be made underthis sub- section unless the Appellate Tribunal hasgiven notice to the assessee of its intention to do soand has allowed the assessee a reasonableopportunity of being heard. 5.Admittedly, the newly added exceptions were not therewhen the Appeals were withdrawn on 3rd August, 2018. Therefore, itcannot be stated that there was any mistake apparent from the recordin the Tribunal to rectify the same and amend the order passed by itunder Sub Section (1) of Section 254. 6.In the circumstances, Petition dismissed with no order asto costs. [R.I. CHAGLA J.] [K.R. SHRIRAM, J.]