Right of appeal against rectification orders was confined to assessments under section 23, not section 35(1) adjustments.

The right of appeal under section 30(1) was confined to objections against an assessment made under section 23, and an order of rectification under section 35(1) was treated as a distinct statutory power that replaces the earlier quantification. The phrase "objecting to the amount of income assessed under section 23" did not extend to an increased assessment resulting from rectification, and a general denial of liability to be assessed under the Act meant liability under the statutory scheme as a whole, not merely a challenge to one provision. No appeal therefore lay against a rectification order under section 35(1).

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Issues: Whether an appeal lies against an order of rectification made under section 35(1) of the Indian Income-tax Act, 1922.

Analysis: The right of appeal under section 30(1) was held to depend on the source of the order challenged and the language of the appellate provision. An order of rectification under section 35(1), though part of the assessment process, was treated as an exercise of a distinct statutory power that supplants the earlier quantification. The expression "objecting to the amount of income assessed under section 23" was construed as confined to assessments made under section 23 itself, not to an enhanced assessment resulting from rectification under section 35(1). The alternative ground, namely denial of liability to be assessed under the Act, was held to mean a denial of liability to be charged to tax under the Act as a whole or under the relevant statutory scheme, not merely an objection to the use of one particular provision. A challenge only to rectification under section 35(1) was therefore not within that clause.

Conclusion: No appeal lies against an order of rectification made under section 35(1) rectifying an assessment under section 23; the answer is against the assessee and in favour of the Revenue.

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