2017 (4) TMI 1256 - AT - Income Tax

Rectification of mistake - Power of tribunal to accept the application for ROM beyond period of limitation - Jurisdiction - Held that - the date of order passed by the Tribunal is 22/03/2013 and the revenue has filed these applications on 28/02/2017 which are clearly beyond a period of six months as provided in Section 254(2) - It is to be noted that the earlier period of four years has been substituted with six months by the Finance Act, 2016 with effect from 01/06/2016. However, we find that no distinction has been made in this section between orders passed before 01/06/2016 and orders passed after 01/06/2016. The Tribunal has been given power to admit an appeal after the expiry of the relevant period, if it is satisfied that there was sufficient cause for not presenting it within that period as per Section 253(5). However, this Tribunal is not enshrined with such powers in respect of a miscellaneous petition filed u/s 254(2) of the Income Tax Act. The condonation of delay of these petitions is beyond jurisdiction - ROM application dismissed - decided against Revenue.

Summary

Issues:
Rectification of mistake apparent from record in Tribunal Order for AY 2009-10 under Section 254(2) of the Income Tax Act, 1961.

Analysis:

Issue 1: Rectification Applications by Revenue
The Revenue filed miscellaneous applications seeking rectification of a mistake apparent from the Tribunal Order dated 22/03/2013 for AY 2009-10 under Section 254(2). The contention was that the Tribunal presumed the assessment orders for various years were passed under Section 143(3) read with Section 153C, while the assessment order for 2009-10 was passed only under Section 143(3). The Revenue argued that fresh adjudication was required for 2009-10 due to this mistake.

Issue 2: Legal Objection on Time Bar
The Counsel for the Assessee raised a legal objection regarding the time bar for entertaining the rectification applications. Referring to Section 254(2) and a judgment, it was argued that the applications were time-barred as they were filed on 28/02/2017, beyond the six-month period from the date of the order. The Tribunal noted the change in the time limit from four years to six months by the Finance Act, 2016, effective from 01/06/2016. It was emphasized that the Tribunal lacked the power to condone the delay in such petitions under Section 254(2).

Judgment
The Tribunal dismissed the Revenue's rectification applications, citing that they were time-barred as per Section 254(2). The Tribunal highlighted the statutory provisions and the lack of authority to entertain petitions filed beyond the specified time limit. Emphasizing adherence to the law, the Tribunal held that condonation of delay was beyond its jurisdiction and rejected the applications. The decision was based on the interpretation of the statute and the absence of provisions allowing for condonation in such cases. The Tribunal's decision aligned with the Mumbai Tribunal's stance on similar matters. Ultimately, all the Revenue's miscellaneous applications were dismissed during the open court session on 25th April 2017.