2023 (8) TMI 1486 - AT - Income Tax

Rectification u/s 254 - seeking rectification in the Tribunal order 2013 (6) TMI 184 - ITAT DELHI wherein TP Adjustment , Depreciation on computer peripherals, Levying of interest u/s 234B and 234C allowed in favour of assessee HELD THAT - We note that the provision of section 254(2) of the Act provides that the mistakes of apparent nature in the Tribunal order may be rectified by the Tribunal itself. In the present case the counsel of assessee has failed to point out any apparent mistake in the Tribunal order and he could not point out any point out or show any order wherein the authorities below have misinterpreted the directions of the Tribunal. Therefore we are unable to see any valid and sustainable reason to issue any further directions in addition to the directions and conclusion already recorded in the Tribunal order. Accordingly, miscellaneous application of assessee being devoid of merits is dismissed.

Summary

Issues Involved:
Rectification of Tribunal order under section 254(2) of the Income Tax Act 1961 for Assessment Year 2007-08.

Analysis:
The judgment pertains to a miscellaneous application filed under section 254(2) of the Income Tax Act 1961 seeking rectification in the Tribunal order dated 08.03.2013 for Assessment Year 2007-08. The counsel for the assessee contended that the authorities below misinterpreted the directions issued by the Tribunal order, leading to the denial of the benefits of the litigation. However, upon inquiry by the bench, the counsel failed to identify any apparent mistake in the Tribunal order or demonstrate any misinterpretation by the authorities below. The Senior DR representing the Revenue vehemently opposed the rectification application, asserting that there was no apparent mistake in the Tribunal order warranting rectification under section 254(2) of the Act. The Tribunal noted that the provision of section 254(2) allows rectification of mistakes of an apparent nature in the Tribunal order. As the counsel for the assessee could not establish any such mistake or misinterpretation by the authorities below, the Tribunal found no valid reason to issue further directions beyond those already contained in the Tribunal order. Consequently, the miscellaneous application of the assessee was deemed devoid of merits and dismissed.

In conclusion, the Tribunal dismissed the miscellaneous application of the assessee, emphasizing that no apparent mistake in the Tribunal order was identified, and no misinterpretation by the authorities below was demonstrated. The judgment underscores the importance of establishing clear grounds for rectification under section 254(2) of the Income Tax Act and highlights the need for concrete evidence of errors or misinterpretations to support such applications. The decision reaffirms the principle that rectification is only warranted in cases where there are genuine mistakes that impact the outcome of the litigation, and not merely for seeking additional directions beyond those already provided in the original order.