- (1.) HEARD the learned counsel on both sides. Leave granted.
(2.) HAVING examined the facts and circumstances of the case, which pertains to Assessment Year 1998-1999, and particularly in the light of the orders passed for the earlier Assessment Years 1996-1997 and 1997-1998 as also having regard to the assessment orders passed in the following year (1999-2000) and in view of the judgment of this Court in CIT Vs. Woodward Governor India (P) Ltd., we are of the view that the Income Tax Appellate Tribunal ("the Tribunal", for short) was wrong in refusing to rectify its own order under S. 254(2) of the Income Tax Act, 1961, particularly when it has failed to appreciate that, in any event, the expenditure could have fallen on the capital account, which was specifically pleaded by the assessee as an alternate submission. For the aforestated reasons, the impugned judgment of the High Court is set aside and the matter is remitted to the Tribunal. We direct the Tribunal to decide the matter de novo in accordance with the law laid down by this Court in Woodward Governor India (P) Ltd. as well as on the merits of this case.
(3.) THE civil appeal is, accordingly, allowed. No order as to costs.;