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Section 254 of the Income-tax Act, 1961 - Appellate Tribunal - Powers of Order of rectification should be passed within outer time-limit of four years; there is no merit in submission that if assessee makes an application for rectification within time prescribed, application should be disposed of by Tribunal or income-tax authority on merits, even if it exceeds maximum period of four years [A.Y 1989-90] The order of rectification should be passed within the outer time-limit of four years and it is not possible for the court to read anything else into the said provision, viz., 254(2), which is plain and unambiguous, which would otherwise extend the outer-limit prescribed therein. Furthermore, the power under section 254(2), intended to rectify an error apparent from the record, is not remedial in nature, but it is rectifiable in nature in the sense that it is to rectify a mistake committed in an order which is apparent and not to provide a remedy to the aggrieved party whether it is the assessee or the revenue. The power in respect of remedial action has to be exercised within the time-limit prescribed and such period cannot be elastically extended by the court. Similarly, the power to rectify an mistake apparent from the record should also be exercised by the income-tax authorities in the same manner. Otherwise, it would amount to conferring enormous power on the income-tax authority or the Tribunal under one pretext or the other. There is no merit in submission that if the assessee makes an application for rectification within the time prescribed, the application should be disposed of by the Tribunal or the income-tax authority on merits even if it exceeds the maximum period of four years. Section 254(2) specifically provides for the outer time limit for four years for passing an order of rectification, which cannot be extended when the language of the section is plain and unambiguous. JUDGMENT P.D. Dinakaran, J.-The Revenue has preferred the above tax case appeal against the order of the Income-tax Appellate Tribunal dated January 31, 2003, in M.P. No. 40(Mds.)/2000 in ITA No. 719/Mds./1994 for the assessment year 1989-90 passed in exercise of the power under…

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