Rectification orders replace original assessments and are appealable, permitting appeals against the corrected operative assessment.

Orders under the assessment statute construed as rectification proceedings modify and replace the original assessment so that the rectified order becomes the operative assessment; accordingly, the rectified assessment is to be read with and treated as part of the original order-result: affirmed for the assessee. Because such rectification orders constitute assessment proceedings producing an operative corrected assessment, they attract the ordinary appellate machinery and are appealable-result: affirmed for the assessee. The appellate tribunal was therefore justified in treating appeals from rectified assessments as maintainable, against the Revenue.

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Issues: (i) Whether orders passed under section 36 of the Agricultural Income-tax Act are to be read with the original order under section 18 and treated as part of the original orders; (ii) Whether orders under section 36 of the Agricultural Income-tax Act are appealable.

Issue (i): Whether orders passed under section 36 of the Agricultural Income-tax Act are to be read with the original order under section 18 and treated as part of the original orders.

Analysis: Authorities establish that rectification proceedings under the relevant provision constitute proceedings for assessment and that a rectification order modifies and replaces the original assessment order so that the corrected order becomes the operative assessment. Earlier decisions treated the rectified assessment as merged with and substituted for the original order, leaving the assessment as rectified as the statutory assessment for the year.

Conclusion: Answered in the affirmative in favour of the assessee.

Issue (ii): Whether orders under section 36 of the Agricultural Income-tax Act are appealable.

Analysis: If rectification orders constitute assessment proceedings and result in an operative rectified assessment order, such orders attract the ordinary appellate machinery applicable to assessment orders. Precedents treating rectified orders as the assessment for the year support the view that appeals lie against the rectified assessment.

Conclusion: Answered in the affirmative in favour of the assessee.

Final Conclusion: The Appellate Tribunal was justified in holding appeals from rectified assessment orders to be maintainable and in reversing the Appellate Assistant Commissioner's view that no appeal lay; the questions referred are answered against the Revenue and in favour of the assessee.

Ratio Decidendi: A rectification order under the assessment statute merges with and replaces the original assessment so that the corrected order is the operative assessment order and is subject to appeal.

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