Rectification of partner assessments cannot rely on later firm findings where statutory retrospectivity is limited.

Section 35(1) did not permit rectification of a partner's completed assessment merely because a later assessment of the firm revealed a discrepancy, since the partner and the firm are distinct entities for assessment purposes and the error was not apparent from the partner's record. Section 35(5), introduced by amendment, created a limited legal fiction for deemed rectification, but it was not purely procedural and operated only within its stated retrospective scope from 1 April 1952. In the absence of express language extending that power to firm assessments completed before that date, earlier completed matters could not be reopened. The rectification power had to be exercised strictly within statutory limits.

---

---

Issues: Whether the Income-tax Officer could invoke section 35(1) to rectify the assessee's completed assessments on the basis of later firm assessments, and whether section 35(5), introduced by amendment, authorised such rectification where the firm's assessment had been completed before 1 April 1952.

Analysis: An individual partner and the firm are distinct entities for assessment purposes, and a discrepancy revealed only by a later assessment of the firm is not a mistake apparent from the record of the partner's assessment within section 35(1). Section 35(5) created a new legal fiction treating such correction as a deemed rectification, but the provision was not merely procedural and affected vested rights. Its language gave only limited retrospectivity from 1 April 1952, and the absence of express words extending it to firm assessments completed before that date showed that the legislature did not authorise reopening of such earlier completed matters. The rectification power had therefore to be exercised strictly within the statutory limits.

Conclusion: The rectification was without jurisdiction. The assessee succeeded, and the Revenue's appeals failed.

---