2016 (12) TMI 1633 - AT - Income Tax

Rectification of order - Interpretation of statute - rent on plant as defined in section 43(3) of the Act - period of financial year 2006-07 was up to 31.03.2006 instead of 31.03.2007 - Held that - an error has crept in the order of Tribunal, under which it has been held that year under appeal is financial year 2006-07 i.e. up to 31.03.2006, which in fact is up to 31.03.2007 - the amended provisions of section 194I of the Act would get attracted - application allowed.

Summary

Issues:
1. Time limitation for filing a Miscellaneous Application under section 254(2) of the Income Tax Act, 1961.
2. Condonation of delay in filing a Miscellaneous Application.
3. Interpretation of provisions relating to rent on plant under section 194I of the Income Tax Act.

Analysis:

Issue 1:
The Tribunal considered the time limitation for filing a Miscellaneous Application under section 254(2) of the Income Tax Act. The amendment brought by the Finance Act, 2016, effective from 01.06.2016, reduced the time limit to six months from the end of the month in which the order was passed. However, for cases decided before this amendment, the previous provision allowing four years from the date of the order still applied. In this case, the Tribunal's order was dated 17.12.2015, falling under the pre-amended provision. Thus, the Miscellaneous Application, although filed late, was within the permissible time frame and was accepted for adjudication.

Issue 2:
The Tribunal examined the condonation application for the delay in filing the Miscellaneous Application beyond the stipulated six-month period. It was clarified that since the application was filed within four years from the date of the order, as per the pre-amended provision, no condonation was required. The Tribunal emphasized that while it had the power to condone delays in filing appeals or Memorandum of Cross Objections under section 253(5) of the Act, no such power was granted for condoning delays in filing Miscellaneous Applications.

Issue 3:
Regarding the interpretation of provisions related to rent on plant under section 194I of the Income Tax Act, the Tribunal noted an error in its previous order where it incorrectly stated the financial year as up to 31.03.2006 instead of 31.03.2007. The Tribunal acknowledged the mistake and decided to recall the order for reevaluation, fixing the matter for a hearing before the regular Bench. Consequently, the Miscellaneous Application filed by the Revenue was allowed, and the order was pronounced on 21st December 2016.