India - Income Tax Act 2010 - Saarc

S. 154 I.T. ACT, 1961 1.688Rectification of mistake.86154. 87 [(1) With a view to rectifying any mistake apparent from the record 88 anincome-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) ofsection 143.]]90[(1A) Where any matter 91 has been considered and decided in any proceedingby way of appeal or revision relating to an order referred to in sub-section (1), theauthority passing such order may, notwithstanding anything contained in anylaw for the time being in force, amend the order under that sub-section in relationto 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—95[* * *](a) may make an amendment under sub-section (1) of its own motion,and(b) shall make such amendment for rectifying any such mistakewhich has been brought to its notice by the assessee, and where theauthority concerned is the 92 [***] 93 [Commissioner (Appeals)], by the94[Assessing] Officer also.(3) An amendment, which has the effect of enhancing an assessment or reducinga refund or otherwise increasing the liability of the assessee, shall not be madeunder this section unless the authority concerned has given notice to the assessee86. See also Circular No. 68, dated 17-11-1971, Circular No. 71, dated 20-12-1971, CircularNo. 73, dated 7-1-1972, Circular No. 87, dated 19-6-1972 in supersession of Circular No. 81,dated 26-3-1972, Circular No. 581, dated 28-9-1990, Circular No. 669, dated 25-10-1993 andCircular No. 725, dated 16-10-1995. For details, see Taxmann’s Master Guide to IncometaxAct.For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.87. Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Prior to itssubstitution, sub-section (1) was amended by the Direct Taxes (Amendment) Act, 1964,w.e.f. 6-10-1964, the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976 and theFinance (No. 2) Act, 1977, w.e.f. 10-7-1978 and substituted by the Taxation Laws (Amendment)Act, 1984, w.e.f. 1-10-1984.88. For the meaning of the terms/expressions “mistake”, “record”, “mistakes apparent” and“mistake apparent from the record”, see Taxmann’s Direct Taxes Manual, Vol. 3.89. Substituted by the Finance Act, 1999, w.e.f. 1-6-1999. Prior to its substitution, clause (b)was substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.90. Inserted by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964.91. For the meaning of the term “any matter”, see Taxmann’s Direct Taxes Manual, Vol. 3.92. Words “Deputy Commissioner (Appeals) or the” omitted by the Finance (No. 2) Act, 1998,w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “AppellateAssistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.93. Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.94. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.95. Proviso omitted by the Finance Act, 1994, w.e.f. 1-6-1994. Prior to its omission, proviso wasinserted by the Finance Act, 1992, w.e.f. 14-5-1992.