2023 (11) TMI 1354 - AT - Income Tax

Assessee's Rectification Plea Under Section 254(2) Dismissed as Time-Barred; Tribunal Cites Limitation Period Precedent.

Leena Power Tech Engineers Pvt. Ltd. Versus Dy. Commissioner of Income Tax, Circle 15 (1) (2), Mumbai.

The Appellate Tribunal in Mumbai dismissed a Miscellaneous Application filed by the assessee under section 254(2) of the Income Tax Act, seeking ... Rectification u/s 254 beyond period of limitation - Tribunal jurisdiction to condone delay in filing of Miscellaneous Application u/s. 254(2) - HELD THAT:- The sub-section (2) of section 254 mandates that the Tribunal at any time within six months from the end of the month in which the order was passed can rectify any mistake apparent from the record, if the mistake is brought to its notice by the assessee or Assessing Officer. Tribunal order dated 21/09/2021 was dispatched to the assessee through Registered Post A.D on 16/11/2021 and was received by the assessee on 17/11/2021, as per the acknowledgement available on record. In the case of Daryapur Shetkari Sahakari Ginning and Pressing Factory [2020 (12) TMI 84 - BOMBAY HIGH COURT] has held that the period of limitation prescribed in section 254(2) of the Act would commence from the date when the order comes to the knowledge of affected party. In the present case, if limitation for filing of Miscellaneous Application is calculated as per the aforesaid decision of Hon’ble Jurisdictional High Court, the period of six months commence from 17/11/2021 i.e. when the order was received by the assessee. Accordingly, the limitation for filing of appeal expired by the end of May, 2022. The present Miscellaneous Application has been filed on 26/08/2022 i.e. after almost three months of expiry of limitation. Tribunal has no jurisdiction to condone delay in filing of Miscellaneous Application u/s. 254(2) of the Act. [Re. Karuturi Global Ltd. [2019 (7) TMI 939 - KARNATAKA HIGH COURT]]. The Appellate Tribunal in Mumbai dismissed a Miscellaneous Application filed by the assessee under section 254(2) of the Income Tax Act, seeking rectification of the Tribunal order dated 21/09/2021. The Tribunal found the application to be time-barred as it was filed almost three months after the expiry of the six-month limitation period. Citing the decision in Daryapur Shetkari Sahakari Ginning and Pressing Factory vs. ACIT, the Tribunal held that the limitation for filing such applications starts from the date the order is received by the affected party. Since the Tribunal lacks jurisdiction to condone the delay, the Miscellaneous Application was dismissed. The order was pronounced on November 3, 2023.