M/S MEPCO INDUSTRIES LTD.MADURAI vs COMMR.OF INCOME TAX

The Supreme Court addressed whether the Commissioner of Income Tax could rectify its order under Section 154 of the Income Tax Act, 1961, based on a subsequent judgment in Sahney Steel and Press Works Limited. The Court held that the Commissioner was entitled to rectify the earlier order as the power tariff subsidy constituted operational subsidies, not capital subsidies, following the precedent set in Sahney Steel. Consequently, the rectification order was upheld, affirming the applicability of Section 154 in light of new judicial interpretations.