Offences and Penalties Chapter- 03
application, in the prescribed form along with a statement of the case, to the High Court, stating
any question of law arising out of such order.(2) The statement to the High Court (HC) referred to in sub-section (1), shall set out the facts, the
determination of the Appellate Tribunal and the question of law which arises out of its order.(3) Where, on an application made under sub-section (1), the HC is satisfied that a question of law
arises out of the order referred to in sub-section (1), it may proceed to hear the case.(4) A reference to the HC under this section shall be heard by a Bench of not less than two judges
of the HC and in respect of the reference, the provisions of section 98 of the Code of Civil
Procedure, 1908 shall apply.(5) The HC upon hearing a reference under this section shall decide the question of law raised by
the reference and pass judgment thereon specifying the grounds on which such judgment is
based and the Tribunal's order shall stand modified accordingly. The Court shall send a copy of
the judgment under the seal of the Court to the Appellate Tribunal.(6) Notwithstanding that a reference has been made to the HC, the tax shall be payable in
accordance with the order of the Appellate Tribunal.(7) Where recovery of tax has been stayed by the HC by an order, such order shall cease to have
effect on the expiration of a period of 6 months following the day on which it was made unless
the appeal is decided or such order is withdrawn by the HC earlier.(8) Section 5 of the Limitation Act, 1908 shall apply to an application made to the HC under sub-
section (1).(9) An application under sub-section (1) by a person other than the Commissioner shall be
accompanied by a fee of Rs.100.- Powers of Board or Commissioner to pass certain orders (U/S 35)
(1) The Board or the Commissioner within his jurisdiction, may suo moto, or otherwise call for and
examine the records of any proceedings under this Act for the purpose of satisfying itself or, as
the case may be, himself as to the legality or propriety of any decision or order passed by a
subordinate officer and may pass such order as it or he may think fit.(2) No order confiscating goods of greater value or enhancing any fine, or imposing or enhancing
any penalty, or requiring payment of any duty not levied or short-levied shall be passed under
sub-section (1) unless the person affected thereby has been given an opportunity of showing
cause against it and of being heard in person or through a counsel or other person duly
authorized by him.(3) No record of any proceedings relating to any decision or order passed by any officer of Inland
Revenue shall be called for or examined under subsection (1) after the expiry of two years from
the date of such decision or order.Explanation.- For the purpose of sections 35, 45 and 46 and for removal of doubt, it is
declared that the powers of the Board, Commissioner or officer of Inland Revenue under these
sections are independent of the powers of the Board under section 42B and nothing contained
in section 42B restricts the powers of the Board, Commissioner or officer of Inland Revenue
under these sections or to conduct audit under these sections.- Power to rectify mistakes in orders (U/S 36)
The Federal Government, the Board or any OIR may rectify any mistake which is apparent from the
record in any order passed by it or him under any of provisions of this Act or the rules made there
under, on its or his own motion or on an application made by a person affected by the order within 3
years of the passing of such order provided that no such rectification which has the effect of