Law: Wealth Tax Act, (XV of 1963)

Section: 27(4),35

Law: Income Tax Act, 1922

Section: 35

(a) Wealth Tax Act (XV of 1963)--- ----S.35---Rectification of mistake---Power of rectification ---Scope--­Wealth Tax Officer, in the present case, while determining the value of the building had separately worked out the value of ground floor and at the same time also added total value of the building as declared by the assessee in the Balance Sheet of the relevant assessment year---Such alleged illegality could not be cured in exercise of power under S.35, Wealth Tax Act, 1963---Principles. From the language of section 35 of the Wealth Tax Act, 1963, as amplified with various decisions, it is clear that the power of rectification provided under this provision of law is much wider than the power of review conferred upon the ordinary Courts and that such power of rectification need not be confined to mere correction of arithmetical mistakes/mistakes of calculations or obvious mistake on record but it could also be exercised in the cases of glaring illegalities or failure to follow the relevant precedents.. But at the same time it is to be kept in mind that the scope of rectification cannot be extended in a way so as to empower an officer to set aside its own order or to modify it as if sitting in a Court of appeal. The mistakes which are not apparent and obvious on the record cannot be termed to be mistakes which can be corrected in exercise of power under section 35 of the Act. More particularly those mistakes which do not surface from the record but need further investigation to reach to a definite conclusion. To say it in other words, while exercising power of rectification, envisaged under section 35, of Wealth Tax Act an officer cannot enter into investigation of factual controversies nor can he investigate into a matter which may require additional evidence for that purpose. In the present case the Wealth Tax Officer while determining the value of building has separately worked out the value of ground floor and at the same time also added total value of the building as declared by the assessee in the Balance Sheet of the relevant assessment year, but this so-called illegality cannot be cured in exercise of power under section 35 of the Wealth Tax Act for…

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