2020 (10) TMI 457 - AT - Income Tax

Rectification u/s 254 - Deduction u/s 80P - HELD THAT - Tribunal is a creature of the statute. Legislature in its wisdom has laid down the law and the specific provision relating to the powers of the rectification of mistakes in the order of the Tribunal is in section 254(2). Admittedly, the order of the Tribunal is dated 22nd March, 2017. The miscellaneous applications have been filed on 30.09.2019. The six month period in the present case expired on 30th September, 2017. Reading of the provisions of section 254(2) the time limit of six month is binding on the hands of the Tribunal. This is in line with the decision in the case of Principal CIT v. ITAT 2020 (2) TMI 129 - BOMBAY HIGH COURT As six month period from the end of the month in which the order has been passed has expired, the order passed by the Tribunal in 2017 (3) TMI 1822 - ITAT COCHIN cannot be amended by the Tribunal. Consequently, the miscellaneous applications filed by the Revenue stand dismissed.

Summary

Issues:
1. Applicability of deduction u/s 80P of the Income Tax Act.
2. Jurisdictional High Court's reversal of earlier decision.
3. Time limit for rectification of mistakes by the Appellate Tribunal.

Analysis:

1. The case involved Miscellaneous Applications by the Revenue regarding the deduction u/s 80P of the Income Tax Act, as per the common order of the Tribunal dated 22nd March, 2017. The Revenue sought rectification based on the Full Bench decision of the jurisdictional High Court, which held that an inquiry into the factual situation was necessary to determine if benefits could be extended under section 80P(4) of the Act.

2. The Tribunal, in its analysis, emphasized that it lacked the power to alter the law laid down by the Legislature. The Tribunal highlighted the provision in section 254(2) of the Income-tax Act, 1961, which allows rectification of mistakes within six months from the date of the order. The Tribunal noted that the miscellaneous applications were filed on 30th September 2019, exceeding the six-month period from the order date of 22nd March 2017.

3. Referring to section 254(2) of the Act, the Tribunal underscored the binding nature of the six-month time limit for rectification. Citing a decision of the Hon'ble Bombay High Court, the Tribunal reiterated that the time limit was a crucial aspect that the Tribunal must adhere to. Consequently, as the six-month period had lapsed, the Tribunal ruled that it could not amend the order in ITA Nos. 440-443/Coch/2016. Therefore, the miscellaneous applications filed by the Revenue were dismissed.

In conclusion, the Tribunal dismissed the Revenue's miscellaneous applications due to the expiration of the six-month time limit for rectification of mistakes, as prescribed by section 254(2) of the Income-tax Act, 1961. The judgment underscored the importance of adhering to statutory provisions and timelines in the appellate process.