ORDER : 1. Heard 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 the case of Commissioner of Income Tax vs. Woodward Governor India Pvt. Ltd. (2009) 13 SCC 1 , we are of the view that the Income Tax Appellate Tribunal [‘Tribunal’ for short] was wrong in refusing to rectify its own order under Section 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. [See Page 73 of the SLP Paper Book] 3. For the afore-stated 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 the case of Woodward Governor India Private Limited (supra) as well as on the merits of this case. 4. The civil appeal is, accordingly, allowed. No order as to costs. Appeal allowed.