2024 (12) TMI 243 - AT - Income Tax

Penalty levied u/s 271(1)(c) - M.A seeking rectification of the order previously passed by ITAT u/s 254(2) - HELD THAT - Apparently, this is ot permissible. The M.A. u/s 254(2) of the Act does not lie against the order already passed u/s 254(2) of the Act. It is only an order passed u/s 254(1) of the Act which can be subject matter of rectification u/s 254(2) of the Act. This view is supportable the plain language of the Act as well as various judicial precedents including the Pr. CIT vs Smt. Alpana Bhartia 2019 (4) TMI 1035 - KARNATAKA HIGH COURT and other judgements cited on behalf of the assessee. M.A. filed by the Revenue is dismissed in limine.

Summary

The Revenue's Miscellaneous Application seeking rectification of a previous order was dismissed by the Appellate Tribunal ITAT DELHI. The Tribunal stated that such rectification is not permissible under section 254(2) of the Income Tax Act, as it can only be done for orders passed under section 254(1) of the Act. The M.A. filed by the Revenue was dismissed in limine.