THE INCOME-TAX OFFICER, ALWAYE vs THE ASOK TEXTILES LTD., ALWAYE

The Supreme Court held that Section 35 of the Indian Income-tax Act, 1922, allows the Income-tax Officer to rectify errors of both law and fact, distinguishing it from the review powers under Order 47, Rule 1 of the Code of Civil Procedure. The Court ruled that the imposition of penal interest under Section 18A(8) was mandatory and must be calculated and added to the assessment. The High Court's decision to deny jurisdiction for the Income-tax Officer's rectification was overturned, affirming the validity of the additional tax imposed.