2007 (12) TMI 107

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.... J.—1. The appeal is by the assessee questioning the order passed by the Tribunal, Bangalore Bench in Misc. Petition No. 122/ Bang/1999 dated July 31, 2003, raising the following substantial question of law  "(1) Whether the Tribunal has power to rectify the order passed on the merits in an appeal filed by the assessee four years thereafter invoking section 254(2) of the Income-tax Act, ....

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....de and the order of the Tribunal was modified allowing the appeal of the Revenue. This order is called in question in this appeal. 4. According to Mr. Shankar, the Tribunal has committed a serious error in 4 allowing the miscellaneous petition filed by the Revenue which was filed beyond 4 years. According to him under sub-section (2) of section 254 a rectification order can be passed by the Tri....

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....of the assessee, shall not be made under this sub-section unless the Appellate Tribunal has given notice to the assessee of its intention to do so and has allowed the assessee a reasonable opportunity of being heard." 6 It is clear from sub-section (2) of section 254 of the Income-tax Act that the Tribunal has powers to pass an order within 4 years either to rectify any mistake apparent from th....

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....rred by limitation. Instead of doing so, the Tribunal has entertained a time-barred application and passed an order on July 31, 2003, beyond 5 years 3 months contrary to the provision of sub-section (2) of section 254 of the Income-tax Act. When the Tribunal cannot pass an order beyond 4 years from the date of the original order, the question of entertaining a petition for rectification beyond 4 y....