INCOME TAX ACT, 1961

Section 254(2)

Appeal (Tribunal) - Rectification under section 254(2) - No mistake apparent from record -

AO imposed penalty under section 271AAB on assessee-company in respect of undisclosed income. However, Tribunal deleted such penalty holding the penalty order as void ab initio on the ground that the penalty was levied vide Order, dated 29-9-2016 before obtaining approval of JCIT as the statutory approval of the JCIT was accorded on 30-9-2016. Aggrieved, Revenue filed miscellaneous application seeking rectification under section 254(2) in the said order of the Tribunal. It was submitted on behalf of Revenue that the error in the penalty order passed by the AO was only typographical and that the date in draft order i.e. the date 29-9-2016 remained unchanged while passing final penalty order under section 271AAB and the final order was passed only on 30-9-2016 after obtaining approval of the JCIT. Held: Under section 254(2), the Tribunal has power to rectify mistakes in its order, however, it is plain that the power to rectify a mistake is not equivalent to a power to review or recall the order sought to be rectified. In instant case, it was an admitted fact that AO passed penalty order under section 271AAB on 29-9-2016 while the approval was granted by JCIT on 30-9-2016 and Tribunal passed the order after considering such fact. So there was no mistake apparent from the record for the purpose of rectification under section 254(2). It appeared that the Revenue sought the review of such order of the Tribunal, which was not permissible. Hence, the miscellaneous application seeking rectification under section 254(2) was dismissed.

Followed:The DCIT, CC-II, Ludhiana v. M/s. Sportking India Ltd. [M.A. Nos. 147 & 148/Chd/2019 ( In ITA Nos.490 & 491 /Chd/2018), dt. 7-1-2020]

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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