Case Law Analysis
|Income Tax Appellate Tribunal
Section 254(2) IT Act | Tribunal Cannot Recall Order to Reconsider Merits - Only Clerical Errors Permitted for Rectification : ITAT Delhi
The ITAT Delhi has firmly held that Section 254(2) of the Income Tax Act permits correction of clerical or obvious mistakes only, and cannot be used to re-evaluate factual or legal merits already decided. This reinforces the finality of tribunal orders and prevents parties from using rectification as a backdoor appeal, directly impacting tax litigants and revenue authorities seeking to reopen concluded cases.