Rectification under section 254(2) is limited to patent errors and cannot reopen a conscious choice between competing precedents.

Rectification under section 254(2) is confined to patent mistakes apparent from the record and cannot be used to review a conscious judicial choice between competing precedents. The Tribunal had noticed the relevant case law and, on the facts, preferred one line of authority; that choice was held to be a matter of adjudication, not rectification. The challenge to the best judgment assessment and the rate applied did not disclose any apparent mistake warranting interference. The refusal to rectify was upheld, and the assessment order as restored by the Tribunal remained undisturbed.

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Issues: Whether the Tribunal erred in refusing rectification under section 254(2) of the Income-tax Act, 1961 on the ground that a coordinate Bench decision was not considered and whether such omission constituted a mistake apparent from the record.

Analysis: Section 254(2) confers a limited power of rectification only to correct mistakes apparent from the record. A failure to consider a precedent amounts to such an error only when the omission is clear on the face of the record and not where the Tribunal has, on the facts, considered the material and exercised judicial discretion in choosing the more appropriate precedent. The order under challenge showed that the Tribunal had noticed the relevant case law and had consciously preferred one line of authority after evaluating the facts. The question whether one precedent was closer on facts than another was held to be a matter for adjudication, not rectification. The challenge to the best judgment assessment and the rate applied did not disclose any patent mistake warranting interference.

Conclusion: The refusal to rectify was in law and the appeal failed.

Final Conclusion: The Tribunal's rejection of the miscellaneous application under section 254(2) was upheld, and the assessment order as restored by the Tribunal remained undisturbed.

Ratio Decidendi: Rectification under section 254(2) is confined to patent mistakes apparent from the record and cannot be used to review a conscious judicial choice between competing precedents or to re-agitate merits.

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