Appellate enhancement power can correct assessment mistakes even where rectification by the assessing authority was also available.

The Appellate Assistant Commissioner, while exercising appellate powers, could validly enhance an assessment and correct apparent mistakes in the assessment order under section 31(5)(i) of the Agricultural Income-tax Act. The correction was not invalid merely because the assessing authority could also have proceeded under the rectification provision within its prescribed time-limit. The appellate enhancement power was sufficient to sustain the adjustment, and the Tribunal was right in upholding that course.

---

---

Issues: Whether the Appellate Assistant Commissioner, while exercising appellate powers, could correct apparent mistakes in the assessment order by invoking the power of enhancement under section 31(5)(i) of the Agricultural Income-tax Act, or whether such correction could be made only by the assessing authority under section 36 within the prescribed time-limit.

Analysis: The assessee contended that rectification of mistakes apparent from the record was confined to section 36 and had to be completed within three years from the assessment order. The Court held that the Appellate Assistant Commissioner was exercising his appellate powers under section 31 and was competent to enhance the assessment. If, in the course of such enhancement, he corrected mistakes in the assessment order, the action did not become invalid merely because the assessing authority could also have proceeded under section 36. The appellate power of enhancement was sufficient to sustain the correction.

Conclusion: The Appellate Assistant Commissioner was competent to invoke the power of enhancement under section 31(5)(i) for correcting the mistakes, and the Tribunal was right in upholding that course; the answer is in favour of the Revenue.

---