Applicability of sec 254 related amendment?

Lucent Technologies GRL LLC vs. ADIT (ITAT Mumbai) - 9 October 2017

Question of Law: Validity of the rectification order in respect to the amendment in sec 254(2) and its applicability for orders passed after 01/06/2016 and not the orders passed prior to 01/06/2016?


Some significant discussion pointers of the case (for easy reference)

1- Applying the proposition of law laid down by Hon’ble Supreme Court, we can safely infer that right to appeal which includes right to file rectification application arises at the time of passing the original order and such right can only be taken away when there is a retrospective amendment. In the instant case before us, the amendment so brought in u/s.254(2) was prospective and applicable to the orders passed after 01/06/2016, and not the orders passed prior to 01/06/2016. Undisputedly in the instant case the order of Tribunal sought to be rectified was dated 06/09/2013 which is much prior to the date of amendment. Accordingly amended provisions of Section 254(2) limiting the period of filing rectification application within a period of six months is not applicable to the instant case before us

2- It is clear that the Co-ordinate Bench relied on by learned DR has not considered the decision of the Apex Court in the case of K. Raveendranathan Nair v/s. CIT (in Civil Appeal No. 3131 of 2006) holding that right to appeal being a substantive right gets crystalized at the time of passing of the original order unless the same is taken away by retrospective amendment. Respectfully following the proposition of law laid down by Hon’ble Supreme Court, we do not find any justification in declining the rectification application which was filed within the prescribed time limit prevailing prior to amendment brought in Section 254(2) of I.T. Act w.e.f. 01/06/2010.

For reading full text of the case please refer link - http://itatonline.org/archives/lucent-technologies-grl-llc-vs-adit-itat-mumbai-s-2542-limitation-period-the-amendment-to-s-2542-to-curtail-the-limitation-period-for-filing-rectification-applications-to-six-months-from-four-y/lucent-tech-254-2-ma-time-limit/