Rectification of appellate order for omitted grounds under section 254(2) permitted, with the appeal restored for fresh hearing.

Section 254(2) permits rectification where an order contains an apparent mistake, including omission to adjudicate grounds that were raised and should have been decided. Here, the appeal had been heard on merits, but only one ground was dealt with while other grounds were left undecided on the assumption that they were merely connected or consequential. The Tribunal treated that omission as a rectifiable mistake, held the miscellaneous application maintainable, recalled its earlier order dated 13.03.2023, and restored the appeal for fresh hearing.

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Issues: Whether the Tribunal should recall its earlier order under section 254(2) of the Income-tax Act, 1961 on the ground that certain grounds of appeal were not adjudicated although the appeal had been heard on merits.

Analysis: The Tribunal found that the appeal had been heard on merits and that only one ground had been decided, while the remaining grounds were omitted on the assumption that they were merely connected and consequential. Since those grounds ought to have been adjudicated separately, the omission constituted an apparent mistake in the order that could be rectified under section 254(2).

Conclusion: The Tribunal held that the miscellaneous application was maintainable, recalled its earlier order dated 13.03.2023, and directed restoration of the appeal for fresh hearing.

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