Case Note & Summary
The Petitioner, Accost Media LLP, filed a Writ Petition before the Bombay High Court challenging an order dated 13 October 2025 passed by the Income Tax Appellate Tribunal (ITAT) rejecting its rectification application under Section 254(2) of the Income Tax Act, 1961 as time-barred. The ITAT had passed an order on 10 December 2024, which the Petitioner received on 24 March 2025. The Petitioner filed a Miscellaneous Application for rectification on 16 July 2025. The ITAT Registry issued a notice stating the application was belated by 15 days, as the six-month period under Section 254(2) runs from the end of the month in which the order was passed (i.e., December 2024), making the deadline 30 June 2025. The Petitioner explained that the application was within time because it was filed within six months of receipt of the order. The ITAT rejected the application as time-barred. The High Court examined Rule 34A of the Income Tax (Appellate Tribunal) Rules, 1963, which governs applications under Section 254(2), and Rule 9, which requires every memorandum of appeal to be accompanied by a certified copy of the order appealed against. The Court held that since Rule 34A applies the procedure for appeals mutatis mutandis to rectification applications, the applicant must furnish a certified copy of the order. This requirement makes it impossible to file a rectification application before receiving the order. Therefore, the limitation period must run from the date of receipt of the order, not from the date of the order. The Court also noted Section 254(3), which requires the Tribunal to send a copy of its order to the assessee. The Court quashed the impugned order and directed the ITAT to consider the rectification application on its merits within four weeks.
Headnote
A) Income Tax - Rectification Application - Limitation - Section 254(2) and Section 254(3) of Income Tax Act, 1961 read with Rule 34A and Rule 9 of Income Tax (Appellate Tribunal) Rules, 1963 - The limitation period of six months under Section 254(2) for filing a rectification application runs from the date of receipt of the order by the applicant, not from the date of the order, because Rule 34A read with Rule 9 requires the applicant to furnish a certified copy of the order, which cannot be obtained before receipt of the order. The Tribunal's rejection of the application as time-barred was quashed. (Paras 3-6)
Issue of Consideration
Whether the limitation period of six months under Section 254(2) of the Income Tax Act, 1961 for filing a rectification application runs from the date of the order or from the date of receipt of the order by the applicant, given the requirement under Rule 34A read with Rule 9 of the Income Tax (Appellate Tribunal) Rules, 1963 to file a certified copy of the order.
Final Decision
The impugned order dated 13 October 2025 is quashed and set aside. The ITAT is directed to consider the rectification application filed by the Petitioner under Section 254(2) on its own merits and in accordance with law, within four weeks from the date of uploading of this order.
Law Points
- Limitation for filing rectification application under Section 254(2) of Income Tax Act
- 1961 runs from date of receipt of order
- not from date of order
- when Rules require certified copy to be filed
- Rule 34A of Income Tax (Appellate Tribunal) Rules
- 1963 read with Rule 9
- Section 254(3) of Income Tax Act
- 1961
