COMMISSIONER OF INCOME TAX Vs. ELECTRONIC RESEARCH LTD

JUDGEMENT

(1.) THE Commissioner of Income-tax, Bangalore, is before me aggrieved by the rejection of an application filed by the Department for recalling the order passed by the Tribunal in terms of annexure M.

(2.) ELECTRONIC Research Ltd. filed its return of income for the assessment year 1995-96. It was completed under Section 143(3) of the Act on March 31, 1998. Three issues were raised in the said assessment order. The first respondent preferred an appeal against the assessment order before the Commissioner of Income-tax (Appeals). The claim of depreciation was also a subject-matter in the said proceedings. The depreciation disallowance is to the extent of Rs. 4 crores on the asset purportedly leased out. The first appellate authority held in favour of the first respondent.

(3.) THE Department filed an application before the Tribunal and that application was dismissed. THE Department filed an appeal under Section 260A of the Income-tax Act before this court in I. T. A. No. 166 of 1999. This court dismissed the appeal on the ground that no substantial question of law arises from the order and appeal. THEreafter, a miscellaneous petition was filed seeking to recall the order in exercise of inherent powers of the Tribunal on the ground of a fraud played on the Tribunal by the respondent. He strongly relied on the judgment of the Supreme Court in United India Insurance Co. Ltd. v. Rajendra Singh [2000] 100 Comp Cas 705. That application was rejected. THE Commissioner is, therefore, before me.