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2015 (3) TMI 154 - HC - Income TaxApplication for rectification under Section 254 - whether Tribunal was right in holding that the application for rectification under Section 254, filed well within time becomes infructuous if the Tribunal takes it up for hearing only after the lapse of four years from the date of the order sought to be rectified? - Held that:- As relying on Sree Ayyanar Spinning & Weaving Mills Ltd. Vs Commissioner of Income Tax [2008 (5) TMI 22 - SUPREME COURT] wherein held that section 254(2) can be viewed in two parts. Under the first part, the Appellate Tribunal may, at any time, within four years from the date of the order, rectify any mistake apparent from the record and amend any order passed by it under sub-section (1). Under the second part of section 254(2), the reference is to the amendment of the order passed by the Tribunal under sub-section (1) when the mistake is brought to its notice by the assessee or the Assessing Officer. Therefore, in short, the first part of section 254(2) refers to the suo motu exercise of the power of rectification by the Tribunal whereas the second part refers to rectification and amendment on an application being made by the Assessing Officer or the assessee pointing out the mistake apparent from the record. In this case, we are concerned with the second part of section 254(2). As stated above, the application for rectification was made within four years. The application was well within four years. It is the Tribunal which took its own time to dispose of the application. Therefore, in the circumstances, the High Court had erred in holding that the application could not have been entertained by the Tribunal beyond four years. - Decided in favour of the Revenue by way of remand. The matter is remanded back to the Tribunal to reconsider the issue
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