Rectification of apparent mistake in reassessment must be considered on merits; refusal to examine request was set aside.

Where a rectification request alleges a mistake apparent from the record in a reassessment order, the authority must consider it on merits under the rectification provision. Since the challenge to reassessment on limitation had been given up and the earlier order had addressed only limitation, the impugned endorsement could not ignore the assessee's request to examine the tax, interest and penalty demand. The refusal to entertain rectification was unsustainable, the endorsement was set aside, and the matter was remanded for fresh consideration in accordance with law.

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Issues: Whether the authority was justified in refusing to consider the assessee's request for rectification of an alleged mistake apparent from the record in the reassessment order.

Analysis: The challenge to the reassessment on limitation had been given up, and the earlier order had dealt only with the question of limitation. The impugned endorsement did not examine whether the tax, interest and penalty demanded in the reassessment order were correct on merits. In such circumstances, the authority was required to examine the rectification request on the footing of a mistake apparent from the record under the rectification provision.

Conclusion: The refusal to entertain the rectification request was unsustainable. The endorsement was set aside and the matter was remanded to the authority to consider the request and pass orders in accordance with law.

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