Sree Ayyanar Spinning & Weaving M.Ltd vs Commissioner Of Income Tax

The Supreme Court interpreted Section 254(2) of the Income Tax Act, 1961, clarifying the powers of the Income Tax Appellate Tribunal regarding rectification of mistakes. The Court held that the Tribunal has the authority to correct errors in its orders, emphasizing that the judgment in Apollo Tyres Ltd. Vs. C.I.T. (225 ITR 273) does not apply to cases involving changes in depreciation methods. The appeal was dismissed, affirming the Tribunal's decision to rework the computation of taxable income based on the correct application of the law.