2021 (8) TMI 775

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....by Income Tax Appellate Tribunal, Allahabad, U.P. (hereinafter called "the tribunal") in ITA No. 280/Alld/2015 for assessment year(ay) 2008-09. This MA was heard through video conferencing mode through Virtual Court. 2. At the threshold, it was brought to our notice by ld. DR that this MA is barred by limitation as it is filed beyond the time provided u/s 254(2) of the 1961 Act. It is brought to our notice by ld, DR that Section 254(2) of the 1961 Act was amended vide Finance Act,2016 w.e.f. 01.06.2016 and the period now provided for rectifying the mistake apparent from record is reduced to six months from the end of the month in which the appellate order was passed by tribunal. It was submitted that prior to aforesaid amendment, the per....

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....s, we are of the considered view that Section 254(2) of the 1961 Act was amended by Finance Act, 2016 w.e.f. 01.06.2016 reducing limitation period for filing of MA for seeking rectification of mistake apparent from record in the tribunal order to six months from the end of month in which appellate order which is sought to be rectified was passed by tribunal. The earlier limitation for filing MA u/s 254(2) was four years. This amendment is procedural in nature and it is well settled that the assessee does not have any vested right in procedure. It is also well settled that if the special statute provides for limitation, then the said special statute will govern the same and the limitation as is provided under the general statute governing li....

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....elf, procedural law operates retrospectively. While making amendment to Section 254(2) by Finance Act, 2016 effective from 01.06.2016, we have observed that the statute has not provided for any saving clause in the amended provision and hence new period of limitation shall be applicable to the instant case. However, it is also trite law that if the amended provision provide too short period to make the working of provision nugatory, then reasonable period has to be provided. Reference is drawn to Hon'ble Supreme Court decision in the case of M P Steel Corporation v. CCE reported in (2015) 7 SCC 58 (SC); Hon'ble Supreme Court decision in the case of New India Insurance Company Limited v. Shanti Mishra (1975) 2 SCC 840(SC) ; Hon'ble Suprem....