Rectification under section 254(2) refused where no patent error was shown and book-profit adjustment followed accounts-based expenditure only.

Rectification under section 254(2) was held unavailable because the Tribunal's earlier order had already decided the issue on merits and the applicant showed no patent mistake apparent from the record. The rectification plea was also different from the stand taken in the original appeal, so no basis existed to reopen the order. On book-profit computation under section 115JB, the adjustment linked to exempt income was confined to expenditure actually incurred and reflected in the accounts, and the assessee failed to show that the section 14A disallowance was nil or lower. The earlier view on the book-profit adjustment was left undisturbed.

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Issues: Whether any mistake apparent from the record was shown in the Tribunal's earlier order so as to warrant rectification under section 254(2); and whether the disallowance relatable to exempt income could be adjusted while computing book profit under section 115JB.

Analysis: The application sought rectification on the footing that the Tribunal had not followed an earlier coordinate bench view. The Tribunal found that its earlier order had already considered the issue on merits, accepted that the adjustment under Explanation 1(f) to section 115JB was confined to expenditure actually incurred and recorded in the accounts, and noted that the assessee had not shown any basis to establish that the amount disallowed under section 14A was nil or lower. The plea raised in rectification was also found to be different from the stand taken in the appeal, and no error apparent from the record was demonstrated.

Conclusion: No rectifiable mistake was shown, and the Tribunal's earlier view on the book-profit adjustment was left undisturbed.

Final Conclusion: The miscellaneous application failed and the assessee obtained no relief.

Ratio Decidendi: Rectification under section 254(2) is unavailable where the impugned order has already decided the issue on merits and no patent mistake from the record is demonstrated; book-profit adjustments may be made only to the extent of expenditure actually reflected in the accounts.

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