The main legal point established in the judgment is that the power under Section 254(2) of the Income Tax Act allows for the rectification of apparent mistakes in the Tribunal's order, without revisiting the merits of the case.

ORDER :

1. The present petition has been filed through the legal heir of the deceased petitioner under Article 226/227 of the Constitution of India challenging the order passed by the learned Income Tax Appellate Tribunal, Raipur on 19.10.2023 in Miscellaneous Application No. 31/RPR/2019 for the assessment year 2004-05 by which the learned Appellate Tribunal has allowed the Miscellaneous application and recalled the order dated 17.01.2019 passed in I.T.A. No. 124/RPR/2011 and observed in paragraph 7 as under :-

'7. We have considered the rival contention, perused the material available on record and orders of the ITAT as well as the revenue authorities. On perusal of the assessment order, it is apparent that case of the assessee was taken up for scrutiny assessment u/s 143(3) on the basis of statement of Shri Virendra Pandey, the complainant which were recorded on oath u/s 131 of the IT Act, wherein certain transactions pertaining to assessee were unearthed and, therefore, the assessee was requested to present facts and evidences in support of his case in absence of which the Assessing Officer was at liberty to treat the amount of Rs. 45 Lakh as undisclosed Income of the assessee. In the later part of the assessment order, it has been emerged that the inspector of Income Tax ward 2(1) was deputed for the purpose of procuring the information from CBI, who after going through the documents including statements provided to him by CBI has furnished a detailed speaking report dated 15/12/2006. It is also noted by the Ld. AO that the assessee was not able to produce any evidence specially any documentary evidence in support of his claim that there is no force in the case in the CBI case and that the CBI as an investigation agency has not found anything against him. On perusal of such facts, it is evident that there was certain information which was provided by the CBI which was submitted in form of a report by the inspector to the AO and therefore the case of the assessee. Accordingly, the contention of the assessee that there was no information provided by the CBI and, thus, exceptions carved out in clause No. 10(e) of CBDT's Circular No. 3/2018 are not applicable in the present case, is not comprehensible and, therefore, are not accepted. In our considered opinion the present case is squarely covered by the said exception under clause No. 10(e) of CBDT's Circular No. 3/2018 dated 11/07/2018, Para 10 of the said circular was amended on 20/08/2018 vide F.No. 279/Misc. 142/2007-ITJ(Pt), wherein the exception qua the issues enumerated in the said para are advised to be contested on merits notwithstanding that the tax effect entailed is less then the monetary limits specified. Para 10(e) specifies the condition "where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ED/DRI/SFIO/Director general of GST intelligence (DGGI)". Consequently, the contention raised by the Revenue in filing of the present MA are found to be on right footing, therefore are appropriate, thus, the order passed in ITA No. 124/RPR/2011 is directed to be recall and to consider the grounds therein for fresh adjudication on merits.

2. The brief facts as reflected from the records are that income tax department has initiated proceeding for assessment of income tax under Section 143(1) of the Income Tax Act against the petitioner. The Assessing Authority vide its order dated 29.12.2006 has added Rs. 45,00,000/- as undisclosed income to the total income which belongs to assessee for the Assessment Year 2004-05. This addition was done as per the investigation done by the C.B.I. and the additional income belongs to the assessee which the assesse has not been able to refute by way of any documentary evidence.

3. Being aggrieved with the order, the petitioner has preferred an appeal before the Commissioner of Income Tax (Appeals), Raipur which was registered as Appeal No. 0380/06-07. Learned Commissioner (Appe