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2021 (7) TMI 529 - AT - Income TaxRectification u/s 254 - DR submitted that this tribunal has erred in granting exemption under section 54F of the Act, to assessee as assessee violated provisions of section 54 (3) of the Act - HELD THAT:- We note that this tribunal denied the exemption under section 54F by following decision of Hon’ble Karnataka High Court in case of Anand Basappa [2008 (10) TMI 99 - KARNATAKA HIGH COURT] Hon’ble Karnataka High Court in case of CIT vs McDowell and Co Ltd [2008 (3) TMI 301 - KARNATAKA HIGH COURT] following the decision of Honda Siel Power Products Ltd [2007 (11) TMI 8 - SUPREME COURT] has held that the power under section 254 (2) of the Act cannot be exercised so as to review order passed by the Tribunal. Hon’ble court held that application of principles laid down by the superior courts to the facts of the case on erroneous understanding of such principles, recording of an erroneous finding by the Tribunal based on facts on record, formation of a conclusion on erroneous application of provision of law to the facts of the case, etc., cannot be held to be a mistake apparent from record warranting rectification by the Tribunal in exercise of its power under section 254 (2) of the Act. We are of the view that by reconsidering the application of principles laid down by Hon’ble Supreme Court to the facts of the case or by reconsidering its findings recorded or by reconsidering the application of the relevant provisions of law to the facts of the case in the present pet miscellaneous petition under section 254(2) this Tribunal would be exercising power of review of its earlier order on merits but not rectification of mistake apparent from record and such review would certainly is beyond the scope of section 254(2).
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