CHHATHU RAM AND ORS. ETC. ETC. vs COMMISSIONER OF INCOME TAX, BIHAR, PATNA AND ORS.

The Supreme Court upheld the High Court's decision that the settlement order did not prevent the Income Tax Officer from rectifying the assessment under Section 35(6) of the Indian Income Tax Act, 1922. The Court clarified that the deduction for Excess Profits Tax was not part of the settlement under Section 34(1B) and could be withdrawn once the liability was determined to be nil. The appeals by the assessees were dismissed, affirming the rectification order and the jurisdiction of the Income Tax Officer.