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2018 (10) TMI 795 - ITAT AHMEDABADRectification of mistake - Allowability of provision for warranty - Held that:- The averments made in the present Miscellaneous Petitions that the Tribunal had failed to consider the chart showing the actual utilization in terms of percentage of sale of previous year is incorrect. Based on information contained in the very same chart, the Tribunal had come to the conclusion that the provision made was not based on the historical data or previous experience, inasmuch as, the chart shows that the percentage of provision for warranty varied from 2.16 to 9.89% which clearly shows that provision made is not based on the historical data. We further note that the averments in the Misc. Petitions that the Tribunal had failed to adjudicate ground relating to restriction of provision for warranty to the extent of 2.14% of sales is also incorrect. Thus, the averments made in the present Miscellaneous Petitions are factually incorrect and the petitioner had only attempted to re-argue the matter on merits which is not permissible in the jurisdiction vested u/s 254 of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short]. The provisions of section 254(2) cannot be exercised to re-argue the matter afresh on different grounds or reasoning. Even the Hon’ble jurisdictional High Court in the case of CIT vs. McDowell & Co. Ltd., [2004 (3) TMI 41 - KARNATAKA HIGH COURT] held that the power u/s 254(2) of the Income-tax Act,1961 is only to amend the order to rectify any mistake apparent from record and the original should not be recalled for re-hearing the matter. Since in the present petitions, the assessee-company could not point out any mistakes which are capable of being rectified, the miscellaneous petitions cannot be entertained. Thus, in the light of the above legal position, the Miscellaneous Petitions are rejected.
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