TMI Blog2010 (3) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... equently,uphold the order of the Tribunaland dismiss the Department’s appeal.. - ITA NO 829/09 - - - Dated:- 19-3-2010 - RAMACHANDRAN NAIR C. N. and GOPINATHAN P. S. JJ. Judgment: The judgment of the court was delivered by C. N. Ramachandran Nair J.- This appeal is filed against the order issued by the Tribunal refusing to entertain a rectification application filed by the Revenue under section 254(2) of the Income-tax Act, 1961 to rectify the order issued by the Tribunal in an earlier rectification application filed by the assessee to rectify the very same appellate order. 2. 3. We have heard standing counsel appearing for the appellant and Adv. Sri. A. Kumar appearing for the respondent-assessee. The respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itated by the assessee in their rectification application and allowed by the Tribunal and therefore it is not maintain-able under section 254(2) of the Income-tax Act. The Tribunal relied on the decision of the Orissa High Court in CIT v. ITAT [1992] 196 ITR 838 against which this appeal is filed. The standing counsel relied on another decision of the very same Bench of the Orissa High Court reported at page 640* of the very same volume of the Income Tax Reports and contended that, by virtue of the merger of the rectification order in the appellate order, the application filed under section 254(2) by the Revenue is still maintain-able. According to the standing counsel, the rectification order issued under section 254(2) merges with the ori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Tribunal rightly or wrongly, another rectifica-tion application on the same issue is not maintainable against the order issued by the Tribunal under section 254(2) of the Act. In this case, the of liability for interest payable by the assessee under section220(2) rightly or wrongly was decided by the Tribunal in the rectificationapplication filed by the assessee in their favour and so much so, theDepartment cannot seek to rectify the very same order again under section254(2) by filing another application. As already held, the second rectifica-tion application by either party is maintainable only on issues not decidedby the Tribunal in any other rectification application filed by either of theparties. We, therefore, clarify that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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