M/S. MAHARANA MILLS (PRIVATE) LTD. vs THE INCOME-TAX OFFICER, PORBANDAR

The Supreme Court held that under Section 35(1) of the Indian Income-tax Act, 1922, the Income-tax Officer may rectify any apparent mistake from the record, provided the assessee is given notice of the intended rectification. The Court found that although a written notice was not provided, the appellant was aware of the proceedings and had discussed the matter with the officer, thus upholding the rectification order. The Court clarified that 'record' includes all proceedings related to the assessment, allowing the officer to review prior calculations for errors.