COMMISSIONER OF INCOME TAX MADRAS Vs. SHRI PANCHU ARUNACHALAM T NAGAR

JUDGEMENT

(1.) This tax case appeal, at the instance of the revenue, was admitted on the following substantial question of law:

(2.) The core question to be decided in this appeal is as to whether in exercise of the provisions of Section 254(2) of the Income Tax Act, 1961, the appellate Tribunal would be entitled to entertain an application seeking for rectification of its order for the second time, when a similar application was rejected earlier?

(3.) The respondent is the proprietor of M/s Panchu Arts and he is assessed to income tax. While completing the assessment for the assessment year 1982-83 in respect of the assessee's production of a Tamil picture titled 'Ananda Ragam', the assessing officer opined that the assessee concealed with the particulars of income and furnished inaccurate particulars of income, particularly the non-disclosure of Rs. 3,00,000/- received as royalty resulting in reduction/evasion of tax. Hence a show cause notice read with Section 271(1)(c) of the Act was issued to the assessee. After considering the objections and after giving sufficient opportunity, the assessing officer quantified the penalty in a sum of Rs. 2,21,320/-. That order was carried on to the Commissioner of Income Tax (Appeals) by the assessee and the levy of penalty was confirmed. As against the said order, an appeal was filed before the Tribunal and the same was also dismissed on 27.10.96. On the ground that a mistake apparent on the face of record had crept in, the assessee preferred a Miscellaneous Petition No. 18/Mds/97. The Tribunal, by order dated 21.8.2000, dismissed the said application with the following observation: