Rectification power under income-tax law did not extend to separate section 23A orders under the 1922 Act.

Rectification under section 35 of the Income-tax Act, 1922 was confined to mistakes apparent from the record of regular assessment or refund proceedings. An order made separately under section 23A was treated as a distinct proceeding and not part of the assessment record, so it could not be rectified under section 35. The wider rectification language later found in section 154 of the 1961 Act was noted but was inapplicable under the 1922 Act. On that footing, the rectification orders and consequential certificate proceedings were without jurisdiction and were quashed.

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Issues: Whether an order passed under section 23A of the Income-tax Act, 1922 could be rectified under section 35 of that Act as a mistake apparent from the record of assessment.

Analysis: An order under section 23A was treated as a distinct proceeding from the regular assessment machinery. The power under section 35 was confined to rectification of mistakes apparent from the record of assessment or refund within the statutory period linked to those proceedings. Since section 23A orders were not assessment orders and could be made independently of the regular assessment process, they did not form part of the record of assessment for the purpose of section 35. The wider wording of section 154 of the Income-tax Act, 1961 was noted, but that provision was not applicable to the case under the 1922 Act.

Conclusion: Section 35 of the Income-tax Act, 1922 did not authorise rectification of the section 23A orders; the impugned rectification orders and consequential certificate proceedings were without jurisdiction and liable to be quashed.

Ratio Decidendi: The power of rectification under section 35 of the Income-tax Act, 1922 extends only to mistakes apparent from the record of regular assessment or refund proceedings and does not cover a separate order made under section 23A.

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