Rectification of apparent mistake: Tribunal can act on its own motion even when the Department points out the error.

Section 35(2) of the Income-tax Act, 1922 empowers the Appellate Tribunal to rectify a mistake apparent from the record on its own motion, and that power is not lost merely because the error is brought to its notice by the Department. The Tribunal may act on information received from any source, so long as the rectification remains its own jurisdictional act and not a compelled response to an unauthorised application. Delay in service of the rectification order does not affect the statutory time limit for making rectification, because that period is governed by section 35 itself. The Tribunal's rectification was therefore within jurisdiction.

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Issues: Whether the Appellate Tribunal had jurisdiction under section 35 of the Income-tax Act, 1922 to rectify its earlier order when the mistake was brought to its notice by the Department, and whether the rectification was invalid because the Department had no locus to move the Tribunal or because service of the rectification order was delayed.

Analysis: Section 35(2) places the Appellate Tribunal in the same position as the Commissioner, Appellate Assistant Commissioner and Income-tax Officer under section 35(1) for rectifying a mistake apparent from the record. The power includes action on the Tribunal's own motion and also permits rectification when the mistake is brought to its notice by the assessee; but the statutory language does not confine the Tribunal's awareness of the error to a notice from the assessee alone. The Tribunal may receive information about an apparent mistake from any source and still act in exercise of its own jurisdiction, provided the rectification is truly its own act and not a compulsory response to an unauthorised application. The delay in service of the rectification order did not affect the statutory period within which rectification could be made, because that period is governed by section 35 itself.

Conclusion: The Tribunal acted within jurisdiction in rectifying its earlier order, and the writ petitions failed.

Ratio Decidendi: Under section 35(2) of the Income-tax Act, 1922, the Appellate Tribunal may rectify a mistake apparent from the record on its own motion, and the fact that the mistake was pointed out by the Department does not, by itself, deprive the Tribunal of jurisdiction or invalidate the rectification.

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