JUDGMENT :

A. PASAYAT. - The point involved in this writ application is whether the Income Tax Appellate Tribunal, Cuttack Bench (in short "the Tribunal"), was justified in recalling its order dated April 14, 1989, in I.T.A. No. 76/CTK of 1986 and C.O. No. 28 (CTK) of 1986, in purported exercise of the powers u/s 254(2) of the Income Tax Act, 1961 (in short "the Act").

The background facts, shorn of unnecessary details, are as follows :

A partnership-firm styled M/s. Bombay Hotel (hereinafter referred to as "the assessee") runs a hotel and, for the assessment year 1982-83, was assessed to Income Tax by the Income Tax Officer, Ward-A, Special Investigation Circle, Bhubaneswar. On the basis of certain documents seized during a search of the premises of the assessee on August 24, 1981, the figures submitted by the assessee were rejected and an addition of Rs. 60,540 to the declared income was made. In appeal, the addition was reduced by Rs. 60,540 to the declared income was made. In appeal, the addition was reduced by Rs. 50,540 by the commissioner of Income Tax (Appeals), Orissa. The Revenue challenged the relief granted to the assessee by the Commission of Income Tax (Appeals), while t