Rectification of section 23A orders under income-tax law upheld where liability arose from the officer's order itself.

An order made under section 23A of the Income-tax Act, 1922 was held to be capable of rectification under section 35 because section 35 allowed correction of mistakes apparent from the record of an assessment or refund order. The Court relied on Supreme Court authority treating the liability under section 23A as arising from the Income-tax Officer's order rather than from the charging provision itself. On that basis, the Income-tax Officer was found to have jurisdiction to rectify the section 23A order.

---

---

Issues: Whether an order passed under section 23A of the Income-tax Act, 1922 could be rectified by the Income-tax Officer under section 35 of that Act.

Analysis: Section 35 empowered rectification of mistakes apparent from the record of an assessment or refund order. The Court noted the department's contention that the expression "assessment" was of wide amplitude, but held that the question was concluded by Supreme Court authority treating liability under section 23A as arising from the Income-tax Officer's order and not from the charging provision itself. On that basis, an order under section 23A was treated as capable of rectification under section 35.

Conclusion: Yes. The Income-tax Officer had jurisdiction to rectify the order made under section 23A under section 35 of the Income-tax Act, 1922.

---