Rectification under Section 35 does not revive the time limit for seeking a case to be stated under Section 66(1).

A rectification under Section 35 that corrects a mistake apparent on the record does not constitute a new order for purposes of invoking the sixty-day limitation in Section 66(1); therefore an application to the Tribunal for a case to be stated made after the sixty-day period following service of the Tribunal's original order is incompetent. The High Court may decline to answer an incompetent reference; accordingly the reference was dismissed and the assessee awarded costs.

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Issues: Whether the reference made by the Appellate Tribunal under Section 66(1) of the Income-tax Act, 1922, by an application filed after the sixty-day limitation period was competent, and whether the rectification under Section 35 of the Income-tax Act, 1922, constituted a fresh order for the purposes of extending the time to seek a case to be stated.

Analysis: Section 66(1) prescribes a sixty-day period from service of the tribunal's order within which the Commissioner or the assessee may require the Appellate Tribunal to state a case for the opinion of the High Court. Section 35 permits limited rectification of mistakes apparent on the record within four years but does not authorize revision or review of the original order. Treating a rectification under Section 35 as a new order for the purposes of Section 66(1) would permit parties to renew the sixty-day right years later, contrary to the statutory scheme. Where an application for a case to be stated was not made within the sixty-day period after service of the tribunal's original order, a subsequent rectification made at the instance of a party does not revive or create a fresh sixty-day period to seek a reference under Section 66(1). The High Court may inquire into the competency of a reference presented by the Tribunal and decline to answer a question if the reference itself is incompetent.

Conclusion: The reference was incompetent because the application for a case to be stated was made after the sixty-day limitation in Section 66(1) had expired and the rectification under Section 35 did not constitute a fresh order to restart that limitation; accordingly the reference is dismissed and the assessee is entitled to costs.

Ratio Decidendi: A rectification under Section 35 of the Income-tax Act, 1922, correcting an error apparent on the record does not amount to a new order for the purposes of invoking the sixty-day limitation under Section 66(1); therefore a reference filed after expiry of the sixty-day period is incompetent.

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