INCOME TAX ACT, 1961

Section 254(2)

Appeal (Tribunal) - Rectification under section 254(2) - Application for rectification being filed beyond the period of limitation -

Assessee filed an application for rectification under section 254(2) submitting that there was a mistake apparent on record in the order of Tribunal, which required rectification. The said application was rejected on the ground of limitation. Assessee contended that the period of limitation should be reckoned with from the end of the month in which the order was served on him. He further contended that the date of the order could not be the date from which the period of limitation would be taken. Held: A perusal of section 254(2) provides that the Tribunal has to pass an order under section 254(2) within a period of six months, from the end of the month in which the impugned order sought to be rectified was passed. Such section did not talk about the rights of the parties. Thus, Tribunal being creature of statue could not go beyond the powers given by statue. Further, the term 'from the date of order' means the date of communication or knowledge of the order. Therefore, it would be concluded that the assessee had knowledge of the order on the date of its pronouncement. Hence, the application for rectification was rightly rejected on the ground of limitation.

REFERRED : D. Saibaba v. Bar Council of India & Anr. in (Writ Petition (Civil) 528 of 2002 C.A. No. 3986/2003 (@ S.L.P. (C) No. 4477/2002), C.A. No. 4010/2003 (@ S.L.P. (C) No. 23108/2002), C.A. No. 1951/2002, dt. 6-5-2003) Petlad Bulakhidas Mills Co. Ltd. v. Raj Singh (1959) 37 ITR 264 (Bom): 1959 TaxPub(DT) 33 (Bom-HC) Arvindbhai H. Shah. v. Asstt. CIT (2004) 84 TTJ 725 (Ahd): 2004 TaxPub(DT) 1682 (Ahd-Trib)

FAVOUR : Against the assessee

A.Y. :

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