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Section 254 read with section 256 of Income-tax Act, 1961 - Appellate Tribunal - Powers of - Assessment years 1955-56 to 1962-63 - Whether question as to whether Tribunal was competent to rectify its original order so as to increase cost of certain machinery in exercise of its powers under section 254(1), involved question of law and was, therefore, referable under section 256 - Held, yes HELD In respect of the relevant assessment years the Tribunal adhered to the finding given by it in the assessment year 1954-55 on the question of the cost of the plant and machinery. However, for the assessment year 1962-63, the assessee made an application for rectification of certain mistakes alleged to have occurred in the order of the Tribunal dated 13-12-1974. This application was allowed by the Tribunal by allowing the increased cost of the plant and machinery. It also dismissed the reference application under section 256(1). On application under section 256(2) : HELD The question whether the Tribunal was competent to rectify its appellate order in regard to increasing cost of the plant of the assessee in exercise of its powers under section 254(1), was a question of law. The Revenue's application was accordingly allowed. CASE REFERRED TO CIT v. Bombay Dyeing and Mfg. Co. Ltd. [1971] 82 ITR 892 (SC) JUDGMENT C.M. Lodha, CJ.-By this application under s. 256(2) of the Income-tax Act, 1961 (hereinafter to be referred to as "the Act"), the CIT, Jaipur, has prayed that the Income-tax Appellate Tribunal, Delhi Bench 'B', may be directed to state a case and submit the following question of law set out in the application : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in reopening and adjudicating on an issue under s. 254 of the Income-tax Act, 1961, which had become final through its earlier orders ?" The Tribunal refused to state the case by its order dated October 25, 1976 (Ex. 4), on the ground that no question of law arises out of the order of the Tribunal. We may now turn to the relevant facts of the case out of which this application arises. The assessee (respondent M/s. Jaipur Udyog Ltd., Sawai Madhopur), a limited company,…

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