COMMISSIONER OF INCOME-TAX, NEW DELHI vs RAO THAKUR NARAYAN SINGH

The Supreme Court ruled that the Income-tax Officer's initiation of proceedings under Section 34(1) of the Income-tax Act, 1922, was invalid due to a prior mistake made by the Appellate Tribunal in setting aside the entire reassessment order, which included both forest and interest income. The Court held that the Income-tax Officer failed to rectify this mistake under Section 35, thus preventing the reopening of the assessment. The decision of the High Court was upheld, confirming that the Tribunal's order had become final and could not be revisited.