Rectification of mistake.
86154. 87[(1) With a view to rectifying any mistake apparent
from the record88 an income-tax
authority referred to in section 116 may,—
(a) amend any order passed by it under the
provisions of this Act ;
89[(b) amend any intimation or deemed intimation
under sub-section (1) of section 143.]]
90[(1A) Where any matter91 has been considered and decided in any
proceeding by way of appeal or revision relating to an order referred to in
sub-section (1), the authority passing such order may, notwithstanding anything
contained in any law for the time being in force, amend the order under that
sub-section in relation to any matter other than the matter which has been so
considered and decided.]
(2) Subject to the other provisions
of this section, the authority concerned—
(a) may make an amendment under sub-section (1)
of its own motion, and
(b) shall make such amendment for rectifying any
such mistake which has been brought to its notice by the assessee, and where
the authority concerned is the 92[***]
93[Commissioner (Appeals)], by the
94[Assessing] Officer also.
95[* * *]
(3) An amendment, which has the
effect of enhancing an assessment or reducing a refund or otherwise increasing
the liability of the assessee, shall not be made under this section unless the
authority concerned has given notice to the assessee of its intention so to do
and has allowed the assessee a reasonable opportunity of being heard.
(4) Where an amendment is made under
this section, an order shall be passed in writing by the income-tax authority
concerned.
(5) Subject to the provisions of section 241, where any such amendment has the effect
of reducing the assessment, the 96[Assessing]
Officer shall make any refund which may be due to such assessee.
(6) Where any such amendment has the
effect of enhancing the assessment or reducing a refund already made, the 96[Assessing] Officer shall serve on the
assessee a notice of demand in the prescribed form specifying the sum payable97, and such notice of demand shall be
deemed to be issued under section 156 and the
provisions of this Act shall apply accordingly.
(7) Save as otherwise provided in section 155 or sub-section (4) of section 186 no
amendment under this section shall be made after the expiry of four years 98[from the end of the financial year in
which the order99 sought to be
amended was passed.]
1[(8) Without prejudice to the provisions of
sub-section (7), where an application for amendment under this section is made
by the assessee on or after the 1st day of June, 2001 to an income-tax
authority referred to in sub-section (1), the authority shall pass an order,
within a period of six months from the end of the month in which the
application is received by it,—
(a) making the amendment; or
(b) refusing to allow the claim.]
