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Issues Involved:
The judgment deals with the rejection of a miscellaneous application under section 254(2) of the Income Tax Act, 1961 by the Tribunal on the grounds of limitation. Summary: The appellant, a public limited company, filed a miscellaneous application under section 254(2) of the Income Tax Act, 1961, seeking rectification of an order passed by the Tribunal in an appeal related to the assessment year 1990-91. The Tribunal rejected the application, citing that the four-year limitation period had expired from the date of the original order. However, the High Court noted that the application was filed within the four-year period, even though the Tribunal's decision on the application was made after the expiry of four years. The High Court emphasized that the language of section 254 allows for rectification within four years from the date of the order, and moving the application within this timeframe should entitle the assessee to a decision on the merits, regardless of when the Tribunal actually decides on the application. Therefore, the Tribunal was directed to reconsider the application on its merits, rather than dismissing it on the grounds of limitation. The High Court further instructed the Tribunal to dispose of the miscellaneous application within three months from the date of the order, without delving into other questions raised in the appeal. Consequently, the appeal was disposed of with these directions, emphasizing the importance of deciding applications within the statutory timeframe provided by the law.
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