Limitation for rectification runs from the final assessment order, not a revisional remand that leaves the matter open.

For limitation under section 35(5) of the Indian Income-tax Act, 1922, the relevant final order is the one that finally completes the assessment or substitution directed on remand, not an earlier revisional order that merely requires fresh determination. The Commissioner's revisional order under section 33A(2) left the assessment open by directing the Income-tax Officer to re-examine the books and make a fresh estimate, so it was not the operative final order. The later order passed by the Income-tax Officer, which completed that exercise and substituted the estimate, triggered limitation. The rectification made within four years from that later order was therefore in time.

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Issues: Whether the limitation for rectification under section 35(5) of the Indian Income-tax Act, 1922 was to be computed from the Commissioner's revisional order under section 33A(2) or from the later order passed by the Income-tax Officer in pursuance of that order.

Analysis: The revisional order did not itself finally substitute an estimate of income. It directed the Income-tax Officer to examine the books, make a fresh estimate, and modify the assessment accordingly. The earlier order therefore left the matter open for further action and could not be treated as the final order for purposes of section 35(5). When the Income-tax Officer later passed the order dated 29 January 1963, he completed the fresh exercise directed by the Commissioner and substituted an estimate, making that order the operative final order. Limitation for rectification had to run from that date, not from the revisional order of 31 August 1955.

Conclusion: The rectification made on 16 March 1965 was within time and the challenge to it failed.

Final Conclusion: The appeal was dismissed because the rectification order was held to be within the prescribed period of four years computed from the later final assessment order.

Ratio Decidendi: For the purpose of limitation under section 35(5), the final order is the order that finally completes the assessment or substitution directed on remand, and not an earlier revisional order that merely sends the matter back for fresh determination.

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