Mistake apparent from the record justified recall where an appellate ground and sub-grounds were left undecided.

Non-adjudication of a raised ground and connected sub-grounds in an appellate order was treated as a mistake apparent from the record under section 254(2) of the Income-tax Act, 1961. The omission was held rectifiable because the issues had been specifically raised but not decided. The earlier order was recalled for the limited purpose of adjudicating Ground No. 4 and the connected sub-grounds, and the rectification application was allowed.

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Issues: Whether non-adjudication of Ground No. 4 and the connected sub-grounds in the earlier appellate order constituted a mistake apparent from the record warranting rectification and recall under section 254(2) of the Income-tax Act, 1961.

Analysis: The assessee had raised Ground No. 4 and sub-grounds in the appeal, but they were not adjudicated in the earlier order. Such omission was treated as a mistake apparent from the record within the scope of section 254(2).

Conclusion: The omission was rectifiable, and the earlier order was recalled for the limited purpose of adjudicating Ground No. 4 and the connected sub-grounds. The application was allowed.

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