Rectification for omitted wealth-tax levy upheld where mandatory additional tax was a patent computational error in the assessment record.

Omission to levy mandatory additional wealth-tax on urban immovable property was treated as a mistake apparent from the record because the liability arose under the relevant schedule and the error was purely computational. The ITAT held that such an omission could be corrected in rectification proceedings under section 35 of the Wealth-tax Act, 1957, since the issue was not debatable and the levy followed automatically from the assessment record. The rectification was therefore valid and the additional wealth-tax demand was sustained against the assessee.

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Issues: Whether the omission to levy additional wealth-tax on urban immovable property in the original wealth-tax assessments could be rectified under section 35 of the Wealth-tax Act, 1957.

Analysis: The liability to additional wealth-tax arose under clause (c) of Paragraph A of Part I of the Schedule to the Wealth-tax Act, 1957, and the omission to include it in the original assessments was treated as a mistake in computation. Such an omission was held to be apparent from the record and capable of correction by rectification. The reasoning followed the principle that where the levy is mandatory and the omission is not a debatable issue but a patent computational error, rectification jurisdiction is available.

Conclusion: The rectification under section 35 was valid and the levy of additional wealth-tax was upheld, against the assessee.

Final Conclusion: The appeals failed, and the orders sustaining rectification and the consequent additional wealth-tax demand were maintained.

Ratio Decidendi: Omission to levy a mandatory tax component that is evident from the assessment record constitutes a mistake apparent from the record and may be corrected in rectification proceedings.

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