2019 (5) TMI 1197 - AT - Income Tax

Rectification u/s 254 - HELD THAT - As per the provisions of section 254(2) of IT Act, the Tribunal can rectify an apparent mistake, if any, in the order passed by it under subsection (1) of section 254 whereas in the present case, the request is made by the assessee for rectification of some alleged mistakes in the order passed by the Tribunal under sub-section (2) of section 254 of IT Act. Hence it is seen that the request of the assessee is outside the scope of section 254(2) of IT Act and therefore, this M.P. of assessee is not maintainable and we dismiss the same.

Summary

Issues:
Request for rectification of alleged mistakes in the order passed by the Tribunal under sub-section (2) of section 254 of IT Act.

Analysis:
The judgment pertains to a case where the assessee filed a Miscellaneous Petition (M.P.) stating an apparent mistake in the order passed by the Tribunal under sub-section (2) of section 254 of the Income Tax Act. The Tribunal referred to the relevant provision of section 254(2) which allows rectification of mistakes apparent from the record within six months of the order being passed. However, the Tribunal noted that the request for rectification in this case was made under sub-section (2) of section 254, which is beyond the scope of the provision. As per the judgment, the Tribunal can only rectify mistakes under sub-section (1) of section 254, and not under sub-section (2) as requested by the assessee. Consequently, the Tribunal held that the assessee's request for rectification was not maintainable under section 254(2) of the IT Act, leading to the dismissal of the M.P. filed by the assessee.

The judgment highlights the importance of adhering to the specific provisions of the law when seeking rectification of orders passed by the Tribunal. It emphasizes that the Tribunal can rectify mistakes under section 254(1) of the IT Act, and not under section 254(2) as requested by the assessee in this case. By dismissing the M.P. filed by the assessee, the Tribunal upholds the statutory framework and limits within which rectifications can be sought, ensuring procedural compliance and legal accuracy in the rectification process. The judgment serves as a reminder for parties to follow the correct legal procedures and provisions when seeking rectification of orders, thereby maintaining the integrity and efficacy of the judicial process in tax matters.