Limitation for ITAT Rectification Begins from Date of Communication of Order to Taxpayer, Not Date of Passing: Bombay HC [Read Order]

In a recent ruling, the Bombay High Court held that the limitation period for filing a rectification application before the Income Tax Appellate Tribunal begins from the date on which the order is communicated to the taxpayer and not from the date on which the order is passed.

Accost Media LLP, the petitioner, filed a writ petition before the Bombay High Court challenging an order dated 13 October 2025 passed by the Income Tax Appellate Tribunal under Section 254(2) of the Income Tax Act, 1961. Through the impugned order, the Tribunal rejected the petitioner’s rectification application on the ground that it was barred by limitation.

The dispute arose from an earlier ITAT order dated 10 December 2024. The petitioner received a copy of this order only on 24 March 2025. After receiving the order, the petitioner filed a miscellaneous application seeking rectification on 16 July 2025.

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The Tribunal registry issued a notice stating that the application was delayed by 15 days, as it was filed beyond six months from the end of December 2024. Despite the petitioner’s explanation, the Tribunal rejected the application as time-barred.

The petitioner’s counsel argued that under the Income Tax (Appellate Tribunal) Rules, a rectification application must be filed along with copies of the Tribunal’s order. They argued that it was impossible to file such an application before receiving the order. They further argued that limitation should start from the date of receipt of the order and relied on statutory provisions and earlier High Court decisions supporting this view.

The Income Tax Department’s counsel argued that Section 254(2) clearly provides that rectification must be sought within six months from the end of the month in which the order is passed. On this basis, the department argued that the Tribunal was correct in rejecting the application as time-barred.

The Division Bench of Justice B. P. Colabawalla and Justice Amit S. Jamsandekar observed that the Tribunal Rules require an assessee to file copies of the order along with a rectification application. The court explained that limitation cannot realistically begin before the order is communicated to the taxpayer. The court also observed that reading the law narrowly would lead to unfair results and could deprive taxpayers of a meaningful remedy.

The court held that the Tribunal had wrongly rejected the rectification application as time-barred. Since the petitioner had already filed an appeal challenging the original ITAT order, the court declined to remand the matter back to the Tribunal. The court permitted the petitioner to raise all grounds in the pending appeal and disposed of the writ petition with no order as to costs.

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