Rectification of apparent tax computation errors remains available despite appeal rights, with penalty recomputed on the corrected tax figure.

An apparent arithmetic or clerical mistake in tax computation can be corrected under rectification powers even where an appeal or revision remedy is available. The availability of appellate proceedings does not bar rectification when the error is obvious on the face of the record and does not involve a reconsideration of the merits. On the facts, the turnover had been accepted, but the tax was wrongly calculated, making the mistake rectifiable. The consequential penalty also had to be recomputed on the corrected tax figure, and the rejection of rectification was unsustainable.

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Issues: Whether the assessing authority could invoke the rectification power to correct an apparent arithmetic mistake in the tax computation, notwithstanding the availability of an appellate remedy, and consequently recompute the tax and penalty.

Analysis: The rectification provision permits correction of any error apparent on the face of the record within the prescribed time, including where the original assessment has been the subject of appeal or revision. The availability of an appeal does not exclude rectification when the mistake is not one going to the merits but is an obvious computational or clerical error. On the facts, the turnover had been accepted, but the tax amount was wrongly worked out, which constituted an inadvertent apparent mistake. The correction therefore fell within the scope of rectification, and the consequential penalty required recomputation on the revised tax figure.

Conclusion: The rectification application was maintainable and the impugned rejection was unsustainable. The tax was to be recalculated at the correct figure, and the penalty was also to be recomputed accordingly, in favour of the assessee.

Final Conclusion: The writ petition succeeded to the extent of correcting the assessment computation and the consequential penalty, with the matter confined to recalculation on the revised tax amount.

Ratio Decidendi: An obvious computational mistake in an assessment can be corrected under the rectification power even if an appeal lies or has been filed, because the existence of appellate remedies does not bar correction of an error apparent on the face of the record.

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