Prakash Chand Nahta vs Union Of India And Ors.

The Supreme Court held that the High Court erred in treating the matter as one of rectification under Section 254 of the Income Tax Act, 1961, when it was actually a question of merit arising from the Tribunal's principal order dated January 11, 1988. The Court emphasized that the issues raised were beyond the scope of rectification and should be addressed on their merits. Consequently, the Court allowed the civil appeal, set aside the High Court's order, and restored the reference for fresh consideration.