Rectification of patent tax error upheld where mandatory interest was omitted from the assessment record.

Section 35(1) of the Indian Income-tax Act, 1922 permits rectification only of a mistake apparent from the record, meaning an error that is plain and obvious without detailed debate. Where the assessee had failed to comply with section 18A(3), section 18A(8) made the levy of interest mandatory on the regular assessment. The omission to add that compulsory interest was therefore an obvious error on the assessment record and could be corrected under section 35(1).

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Issues: Whether the omission to levy penal interest under section 18A(8) of the Indian Income-tax Act, 1922, was a mistake apparent from the record so as to be rectifiable under section 35(1) of the Act.

Analysis: Section 35(1) authorises rectification only of a mistake apparent from the record, and not a general revision or review of the assessment. A mistake apparent is one which is manifest, plain, or obvious and does not require debate or elucidation. Where the assessee had admittedly failed to comply with section 18A(3), section 18A(8) made the addition of interest obligatory on the regular assessment. The failure to add such mandatory interest was therefore an obvious error on the face of the assessment record.

Conclusion: The omission to levy penal interest was rightly treated as a mistake apparent from the record and was validly rectified under section 35(1); the challenge failed.

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