Wrong statutory citation does not invalidate rectification where lawful authority exists under the correct provision.

A rectification order is not invalid merely because it cites the wrong statutory provision, if the authority had substantive power under the correct law. For an assessment year governed by the Indian Income-tax Act, 1922, rectification of an order under section 23A was available under section 35(1) of that Act, not section 154 of the Income-tax Act, 1961. The governing test is the existence of lawful authority, not the accuracy of the provision cited in the order. On that basis, the rectification order was held valid and the Income-tax Officer's jurisdiction was upheld.

---

---

Issues: Whether a rectification order passed by the Income-tax Officer could be sustained when the order referred to section 154 of the Income-tax Act, 1961, although the applicable power was section 35(1) of the Indian Income-tax Act, 1922, for an assessment year governed by the earlier Act.

Analysis: The applicable law for rectification was the Indian Income-tax Act, 1922, and not section 154 of the Income-tax Act, 1961. The power of rectification existed under section 35(1) of the 1922 Act in relation to an order under section 23A of that Act. A mere reference to the wrong provision in the rectification order did not invalidate the order, because the authority had the substantive power to make such an order under the correct statutory source. The order was therefore to be tested by the existence of lawful authority, not by the incorrect citation used in the order.

Conclusion: The rectification order was valid and the Tribunal was not justified in holding that the Income-tax Officer lacked jurisdiction. The question was answered against the assessee and in favour of the Revenue.

Ratio Decidendi: A wrong citation of the statutory source does not vitiate an order if the authority had power to make the order under the correct provision.

---