M. K. VENKATACHALAIVI, I. T. O. ANDANOTHER vs BOMBAY DYEING AND MFG. CO., LTD.

The Supreme Court held that the Income-tax Officer was justified in rectifying the assessment order under Section 35 of the Indian Income-tax Act, 1922, due to an apparent mistake resulting from the retrospective amendment to Section 18-A(5) by the Indian Income-tax (Amendment) Act, 1953. The Court clarified that the amendment, which limited the interest entitlement to the difference between the advance tax paid and the assessed amount, was applicable from April 1, 1952, and thus the original order was inconsistent with the amended provisions. The High Court's ruling was overturned, affirming the Income-tax Officer's rectification of the assessment order and the issuance of a notice of demand for the balance amount owed by the assessee.