Rectification and natural justice in gift-tax proceedings fail where no patent error is shown and hearing notice is adequate.

A rectification application failed because no patent or apparent mistake was shown in the Tribunal's earlier direction. The Tribunal held that its prior order had not enhanced the gift value itself; it only required the Gift-tax Officer to revalue the shares and complete assessment on maintainable profits after giving the assessee a proper hearing. On the notice challenge, the Tribunal found that section 23(5) required only an opportunity of being heard, and a notice expressly invoking that provision was sufficient to indicate possible enhancement. Service on the assessee's authorised representative was valid, so no denial of natural justice was established.

---

---

Issues: Whether the order of the Tribunal suffered from any rectifiable mistake on the alleged enhancement of gift value and whether the notice under section 23(5) of the Gift-tax Act afforded adequate opportunity of hearing.

Analysis: The Tribunal found no apparent mistake in its earlier order. It held that the earlier direction did not itself enhance the value of the gift but only required the Gift-tax Officer to revalue the shares and frame the assessment on the basis of maintainable profits, after giving proper opportunity to the assessee. On the notice objection, the Tribunal held that section 23(5) requires only an opportunity of being heard, and the notice specifically referring to that provision was sufficient to alert the assessee to the possibility of enhancement. It also held that notice served on the assessee's authorised representative was effective service, and there was no denial of reasonable opportunity.

Conclusion: No rectifiable mistake was shown and no breach of natural justice was established; the miscellaneous application was rejected.

Ratio Decidendi: A rectification application cannot succeed unless a patent mistake is shown in the order, and a notice expressly referring to the relevant enhancement provision satisfies the requirement of reasonable opportunity where the assessee is represented by an authorised agent.

---