Valid demand notice can be issued later when the first notice omitted assessed interest and no rectification was needed.

A notice of demand under section 29 must specify the sum payable in consequence of the assessment, and an incomplete notice may be replaced by a valid one that conforms to the completed assessment. Where interest had already been charged in the assessment order but was omitted from the first demand notice, the omission was treated as a defect in the notice, not an error in the assessment record requiring rectification under section 35(1). The authorities cited on rectification of assessment orders did not apply. There is no statutory time-limit for issuing a proper demand notice, and the appellate right arises on service of the valid notice.

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Issues: Whether the second notice of demand issuing the interest amount was valid, and whether prior rectification under section 35(1) was necessary before issuing it.

Analysis: The assessment had already been completed and the interest had been charged in the assessment order, but the first notice of demand omitted that interest. The statutory function of a notice of demand under section 29 is to specify the sum payable in consequence of the assessment. A correct notice conforming to the assessment can therefore be issued later if the earlier notice was incomplete. The omission in the demand notice was not treated as a mistake in the assessment record requiring rectification under section 35(1), since the assessment and charging of interest themselves were not in error. The authorities relied on by the assessee concerned rectification of assessment orders or omission of levy at the assessment stage and did not govern a case of an incomplete demand notice. There is also no statutory time-limit for issuing a proper notice of demand, and the assessee's appellate right arises from service of the valid notice.

Conclusion: The second notice of demand was valid, and no prior order under section 35(1) was required. The issue was decided against the assessee and in favour of the Revenue.

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