Dismiss indication of error in A & E (3)

I believe the answer is:

axe

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'dismiss' is the definition.
(I've seen this in another clue)

'indication of error in a e' is the wordplay.
'indication of error in' becomes 'ax' (I can't justify this - if you can you should give a lot more credence to this answer).
'ax'+'e'='AXE'

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(Other definitions for axe that I've seen before include "saw alternative?" , "Terminate - with a hatchet?" , "Fraternize" , "Chop" , "fell" .)

I've seen this clue in The Times.

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