In the facts given in the case study of second meeting, can a rectification order under section 254 of the Income-tax Act, 1961 be passed by the…

The issue under consideration in this case is whether a rectification order can be passed by the Income-tax Appellate Tribunal under Section 254 if the application for rectification was made by the Assessing Officer beyond 6 months from the end of the month in which order sought to be rectified was passed. This issue was addressed in Sree Ayyanar Spinning and Weaving Mills Ltd. v. CIT (2008) 301 ITR 434 (SC). As per section 254 (2) of the Income-tax Act, 1961, the Appellate Tribunal may, at any time within 6 months from the end of the month in which order is passed, with a view to rectifying any mistake apparent from record, amend any order passed by it. Where the application for rectification is made by the Assessing Officer or the Assessee, the Tribunal is bound to rectify the same. However, the application for rectification by the Assessee or Assessing Officer cannot be filed belatedly after 6 months from the end of the month in which the order sought to be rectified was passed. [Ajith Kumar Pitaliya vs ITO (2009) 318 ITR 182 (M.P.)] In the present case, since the application for rectification was filed by the income-tax department after 6 months from the end of the month in which order sought to be rectified, the application is not maintainable, and the Appellate Tribunal cannot pass a rectification order under section 254 (2) . Circumstances where Income-tax Appellate Tribunal is empowered to pass rectification order after 6 months. Where the application for rectification is made by the Assessing Officer or the Assesseee within 6 months from the end of the month in which the order sought to be rectified was passed, the Appellate Tribunal is bound to decide the application on merits and not on the ground of limitation i.e. order can be passed after expiry of 6 months from the end of the month in which the order sought to be rectified was passed.