Wrong name in tax notice deemed clerical error under Section 292B, assessment proceedings remain valid despite naming discrepancy

The SC dismissed a SLP challenging reopening of assessment where notice was issued against a non-existent entity with incorrect name. The Court held that the wrong name in the notice constituted merely a clerical error correctable under Section 292B of the Income Tax Act. Following the HC precedent, the SC ruled that human errors and mistakes cannot nullify otherwise valid proceedings when no prejudice is caused. The Court emphasized that Section 292B specifically provides for correction of such clerical errors, and the substantive validity of the assessment proceedings remained intact despite the naming discrepancy. The dismissal affirmed that procedural errors of clerical nature do not invalidate tax proceedings where the underlying assessment action is legally sound.

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The Supreme Court of India in 2018 (4) TMI 529 held that a wrong name in a notice was a clerical error correctable under Section 292B of the Income Tax Act. The special leave petition was dismissed, and pending applications were disposed of.

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