INCOME TAX ACT, 1961

Section 254(2)

Rectification - Mistake apparent - Argument advanced not considered by Tribunal -

Assessee urged that ITAT has erred inasmuch as it had not remitted the issue to file of AO, after admitting additional evidence. Held: Power of rectification under section 254(2) can be exercised only when mistake which is sought to be rectified is an obvious and patent mistake which is apparent from the record, and not a mistake which requires to be established by arguments and a long drawn process of reasoning on points on which there may conceivably be two opinions. Failure by Tribunal to consider an argument advanced by either party for arriving at a conclusion is not an error apparent on the record, although it may be an error of judgment. Thus issue pointed out by assessee did not fall under the realm of mistake apparent from the record liable to be rectified under section 254(2).

Relied upon:TS Balaram, ITO, Company Circle IV, Bombay v. Volkart Brothers & Ors. (1971) 82 ITR 50 (SC) : 1971 TaxPub(DT) 355 (SC), CIT v. Ramesh Electric And Trading Co. (1993) 203 ITR 497 (Bom-HC) : 1993 TaxPub(DT) 847 (Bom-HC).

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2012-13

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