SMART PRIVATE LIMITED Vs. INCOME TAX APPELLATE TRIBUNAL

JUDGEMENT

(1.) The question which has been referred for consideration to this Larger Bench is whether an applicant has a right of being heard by the Income-tax Tribunal when an application under section 254 (2) of the Income-tax Act, 1961 is filed for rectifying any mistake apparent from the record.

(2.) Briefly stated, the facts are that the petitioner had filetwo appeals before the Income-tax Appellate Tribunal in respect of the assessment years 1982-83 and 1983-84. The main ground in the appeal related to the claim of assessability of income, from sub-letting of the property, amounting to Rs.l,21,000.00 .The case of the petitioner was that the income from Subletting was not liable to tax atall and, secondly, such income should not be considered as income covered by any other bead of income mentioned in section 14. In the alternative, it was also submitted that such, income, if at all, could be brought to assessment only under the head, 'Business'.

(3.) By order dated 22nd August, 1988 the Income-tax Tribunal partly allowed the petitioner's appeal.