The High Court set aside the order passed by the President of the Appellate Tribunal to constitute a Special Bench to decide the appeal preferred in the case of the assessee. During the pendency of the special leave petition filed by the President, the appeal before the Tribunal was decided and disposed of by the regular Bench. The Supreme Court disposed of the special leave petition as having become academic, without expressing anything on the merits on the legality and validity of the judgment rendered by the High Court and the powers of the President to constitute a Special Bench in exercise of powers under section 255(3) of the Income-tax Act, 1961 and keeping the question of law open. The court, however, expunged the strictures passed in the judgment against the Vice President of the Tribunal.
President, ITAT v. Jagati Publications Ltd. (2022) 447 ITR 644 / 219 DTR 161 / 329 CTR 267/ (2023) 290 Taxman 121 (SC) Editorial : Jagati Publications Ltd v. President, ITAT (2015) 377 ITR 31 /234 Taxman 527/ 279 CTR 271 (Bom)(HC)
S. 255 : Appellate Tribunal-Procedure-Functions-Power of President to constitute special bench Appeal disposed of by Regular Bench of Tribunal during pendency of Special Leave Petition of Department-Special Leave Petition disposed of as academic leaving question of powers of President to constitute special bench open-Strictures against vice president of Tribunal passed by High Court expunged. [S. 255(3), Art. 136, 226]