Rectification under Section 254(2) cannot target a prior rectification order; it is confined to orders under Section 254(1).

A miscellaneous application under Section 254(2) of the Income-tax Act, 1961 is not maintainable when it seeks rectification of an order already passed under Section 254(2). The Tribunal held that the rectification power under Section 254(2) is confined to correcting an order under Section 254(1), and the statutory scheme does not permit a second rectification application against a rectification order. On that basis, the application was dismissed in limine and the earlier order remained undisturbed.

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Issues: Whether a miscellaneous application under Section 254(2) of the Income-tax Act, 1961 is maintainable against an order already passed under Section 254(2) of the Income-tax Act, 1961.

Analysis: The application sought rectification of an earlier order passed on a prior miscellaneous application under Section 254(2). The Tribunal held that rectification under Section 254(2) lies only against an order passed under Section 254(1), and not against an order already rendered under Section 254(2). The statutory scheme did not permit a second rectification application directed at a rectification order.

Conclusion: The miscellaneous application was not maintainable and was dismissed in limine.

Final Conclusion: The Revenue obtained no relief, and the earlier order remained undisturbed.

Ratio Decidendi: A rectification application under Section 254(2) of the Income-tax Act, 1961 cannot be maintained against an order already passed under Section 254(2); it is confined to rectification of an order under Section 254(1).

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