ITAT don’t have power to review its order – Judgement delivered prior to Checkmate Services Pvt. Ltd would continue
In a significant ruling, the Bombay High Court has clarified that the Income Tax Appellate Tribunal (ITAT) lacks the authority to revise its orders based on subsequent decisions of the Supreme Court.
In 𝘐𝘯𝘧𝘢𝘯𝘵𝘳𝘺 𝘚𝘦𝘤𝘶𝘳𝘪𝘵𝘺 𝘢𝘯𝘥 𝘍𝘢𝘤𝘪𝘭𝘪𝘵𝘪𝘦𝘴 (Writ Petition 17175 of 2024), the High Court observed:
1 The ITAT’s original order (July 2022) allowing deductions for delayed PF and ESIC payments under Section 36(1)(va) was passed before the Checkmate Services Pvt. Ltd. judgment (October 2022).
2 A Miscellaneous Application (MA) filed by the Income Tax Department, based on the Checkmate ruling, cannot be used to review an earlier order.
3The Tribunal’s powers of review are limited and do not permit reopening decisions due to subsequent legal interpretations by higher courts.
By allowing the writ petition, the High Court reinforced that procedural fairness and finality in adjudication cannot be compromised by retrospective application of judicial precedents.
This ruling provides clarity on the scope of ITAT’s review authority and highlights the importance of respecting timelines and jurisdiction in tax litigation.
The copy of the writ petition is as under:
