S. 254(2): Tribunal cannot recall its order & substitute by new order

The power to rectify an order u/s 254 (2) is extremely limited. It does not extend to correcting errors of law, or re-appreciating factual findings as that would amount to a review. The amendment of an order does not mean obliteration of the order originally passed and its substitution by a new order. The Tribunal’s order that it had not considered a decision in the assessee’s own case for an earlier year where the facts & circumstances were the same and that this was an “apparant mistake” cannot be sustained.

CIT vs. Maruti Insurance Distribution Services (Delhi High Court)