| COURT: | Bombay High Court |
| CORAM: | Milind D. Jadhav J, Ujjal Bhuyan J |
| SECTION(S): | 254(2) |
| GENRE: | Domestic Tax |
| CATCH WORDS: | limitation period, rectification of mistake |
| COUNSEL: | Shilpa Kapil |
| DATE: | January 24, 2020 (Date of pronouncement) |
| DATE: | February 5, 2020 (Date of publication) |
| AY: | 2006-07 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 254(2): The limitation of six months for filing a rectification application was substituted by the Finance Act, 2016 w.e.f. 01.06.2016. Therefore, for assessment years prior thereto, the limitation period may be construed to be four years from the date of the order. Even otherwise, if the view is taken that the limitation period is six months, it is sufficient if the application is filed before that date. It is not necessary that the order has to be passed before that date. The assessee or AO can only bring the mistake to the notice of the Tribunal but have no control over the Tribunal. Neither party can be made to suffer for the inability of the Tribunal to pass an order within the limitation period (All judgements referred) | |
The use of the expression “may” in the aforesaid provision is clearly indicative of the legislative intent that the limitation period of six months from the end of the month in which the order was passed is not to be construed in such a manner that there can not be any extension of time beyond the said period of six months. This is so because the assessee or the Assessing Officer can only bring the mistake to the notice of the Tribunal. The assessee or the Assessing Officer has no control over the Tribunal. For one reason or the other, the Tribunal may not be in a position to pass the order under Section 254(2). For the inability of the Tribunal to pass such an order within the period provided, neither the assessee nor the revenue should suffer. What therefore becomes relevant is that the assessee or the Assessing Officer should bring the mistake to the notice of the Tribunal within the limitation period
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