INCOME TAX ACT, 1961

Section 254

Appeal (Tribunal) - Rectification of Tribunal's order - Period of limitation to rectify expired -

This application for rectification of mistake was filed by Revenue in respect of deduction under section 80P. Tribunal have originally dismissed the revenue's appeal by following the decision of High Court in the case of the Chirakkal Service Cooperative Bank Ltd. & Ors. v. ITO (2016) 384 ITR 490 (Ker.) : 2016 TaxPub(DT) 1770 (Ker-HC). It was the submission that subsequently High Court had passed an Order dt. 19-3-2019 in ITA No. 97 of 2016 in the case of Mavilayi Service Co-operative Bank Ltd. v. CIT (2019) 414 ITR 67 (Ker) (FB) : 2019 TaxPub(DT) 4909 (Ker-HC), wherein High Court had held that its earlier decision in the case of the Chirakkal Service Co-operative Bank Ltd. & Ors. (supra) was not good law and AO had to conduct an inquiry into the factual situation. Held: Tribunal is a creature of the statute. Legislature in its wisdom has laid down the law and specific provision relating to the powers of rectification of mistakes in order of the Tribunal is in section 254(2). Admittedly, order of Tribunal is dated 22nd March, 2017. The miscellaneous applications have been filed on 30-9-2019. The six months 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. As six months period from the end of the month in which the order was passed had expired, the order passed by the Tribunal cannot be amended. Consequently, the miscellaneous applications filed by the revenue stand dismissed.