2019 (4) TMI 1035 - HC - Income Tax

Rectification u/s 254 - mistake apparent on the record - order passed u/s 254(2) rectified or amended by invoking sub-section (2) of Section 254 once again - HELD THAT - From a reading of sub-section (2) of Section 254, it would be clear that the Tribunal possesses the power to rectify any mistake apparent on the record in the order passed by it under sub-Section (1). If the order under sub-section (2) of Section 254 is passed, the said order would not be available for rectification of mistake again under Section 254 (2) of the Act. The order passed under Section 254(2) cannot be rectified nor amended by invoking sub-section (2) of Section 254 once again. Repetitive applications under Section 254 (2) of the Act are not permissible. In the case on hand also, the Tribunal in exercise of its power under sub-section (2) of Section 254 has rectified the mistake apparent on the record and deleted the double addition of income in respect of the assessee. Thereafter, the Revenue again files an application under sub-section (2) of Section 254 seeking rectification of the order passed under sub-section (2) of Section 254 which is not maintainable. The Tribunal has rightly dismissed the Misc. petition filed by the Revenue. There is no error or omission in the order passed by the Tribunal. Appeal dismissed.

Summary

Issues:
1. Rectification of mistake apparent on record under Section 254(2) of the Income Tax Act.
2. Maintainability of filing repetitive applications under Section 254(2) of the Act.

Analysis:
1. The case involved an appeal by the Revenue against the order of the Income Tax Appellate Tribunal rejecting a petition filed under Section 254(2) of the Income Tax Act. The original assessment involved a joint bank account in HSBC, Geneva, belonging to the assessee and her husband. The Tribunal initially upheld the addition of income to both individuals. Subsequently, a rectification petition was filed under Section 254(2) to correct the double addition, resulting in the deletion of the income addition to the assessee. The Revenue then filed another petition seeking rectification of the earlier order, which was dismissed by the Tribunal. The High Court upheld the Tribunal's decision, emphasizing that once an order is passed under Section 254(2), it cannot be rectified again under the same provision.

2. The High Court clarified that repetitive applications under Section 254(2) of the Act are impermissible. It highlighted that the Tribunal had already rectified the mistake and deleted the double addition in the case at hand. Therefore, the subsequent application by the Revenue to rectify the same order was deemed not maintainable. The judgment emphasized that the Tribunal's decision to dismiss the Revenue's application was appropriate, as there was no error or omission in the original order. As a result, the appeal was dismissed, and the application for condonation of delay was rejected.

This comprehensive analysis outlines the key legal issues, the sequence of events, and the court's reasoning in the judgment, providing a detailed understanding of the case and its implications under the Income Tax Act.