Case Law Details
The Amendment Under Section 254(2) In Respect Of Time Limit Of Six Months For Rectification Is Prospective And Applicable To The Orders Passed After 01.06.2016.
At present, as per section 254(2) of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’), the Appellate Tribunal may, at any time within six months from the end of the month in which the order was passed (substituted for “four years from the date of the order” by the Finance Act, 2016, w.e.f. 1-6-2016), with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub-section (1), and shall make such amendment if the mistake is brought to its notice by the assessee or the Assessing Officer. It has been provided that an amendment which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made under this sub-section unless the Appellate Tribunal has given notice to the assessee of its intention to do so and has allowed the assessee a reasonable opportunity of being heard.
Recently, in Lucent Technologies GRL LLC, (Since merged with Alcatel Lucent USA Inc) vs. ADIT (International Taxation) [MA No.411/Mum/2016 to 414/Mum/2016 (Arising out of ITA No.7001/Mum/2010) (A.Y.2003-04), decided on 09/10/2017], briefly, miscellaneous applications were filed by the assessee seeking rectification of mistake apparent on the record in the order dated 06/09/2013 passed by the Tribunal while disposing of bunch of appeals filed by the Department.
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