Revisional power cannot defeat statutory limitation on prejudicial rectification or reassessment after one year.

A revisional power stated to be subject to the Act cannot override the Act's limitation period for prejudicial rectification or reassessment. The text explains that section 35 permits correction of a mistake apparent from the record only within one year from the date of demand where the change is adverse to the assessee, and that the same temporal limit applies to analogous enhancement of assessment under section 34. On that basis, the Commissioner could not rectify the assessment prejudicially after expiry of one year, and the issue was answered in favour of the assessee.

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Issues: Whether the Commissioner could, in exercise of review powers under section 33 of the Indian Income-tax Act, enhance the assessment by rectifying a mistake after the expiry of one year from the date of demand.

Analysis: Section 33 confers revisional power on the Commissioner, but that power is expressly subject to the provisions of the Act. Section 35 permits rectification of a mistake apparent from the record only within one year from the date of demand where the correction is prejudicial to the assessee, and the same temporal restriction would also govern analogous enhancement of assessment under section 34. A construction allowing the Commissioner to reopen and alter an assessment to the detriment of the assessee without any limitation would be inconsistent with the statutory scheme and the express words making section 33 subject to the Act.

Conclusion: The Commissioner had no authority to rectify the assessment prejudicially after the expiry of one year from the date of demand, and the question was answered in the affirmative in favour of the assessee.

Ratio Decidendi: A revisional power expressed to be subject to the provisions of the Act cannot be used to override the limitation that restricts prejudicial rectification or reassessment of an assessment.

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