Procedure for Rectification of Mistake in Filing of Return

With a view of rectifying any mistake apparent from the record, an income tax authority may amend any order passed by it under the provisions of this Act or amend any intimation under section 143(1). An order for such amendment shall be passed in writing by the income-tax authority.

Who can amend the order or intimation: The order or intimation or deemed intimation, as the case may be, may be amend—

• By the income-tax authority of its own motion ;
• By the income-tax authority if the mistake has been brought to its notice by the assessee ; and
• By the Commissioner if the mistake has been brought to its notice by the assessee or the Assessing Officer.

Time limit for amendment of order or intimation: the time limit for amendment of order or intimation is as follows:

• Amendment shall be made within four years from the end of the financial year in which the order sought to be amended was passed ;
• If the application for amendment was made by the assessee after May 31, 2001, the authority shall pass the amended order within a period of sixty months from the end of the month in which the application is received by it making the amendment or re fusing to allow the claim. However, such amendment shall not be made after the expiry of four years from the end of the financial year in which the order sought to be amended was passed.

The following may also be considered in such respect:

1. Where any matter has been considered and decided in many proceeding by way of appeal or revision relating to an order, the authority may amend such order in relation to any matter other than the matter which has been so considered and decided.
2. An amendment which has the effect of enhancing an assessment or reduction a refund or otherwise increasing the liability of the assessee shall be made after giving notice to the assessee by the authority of its intention so to do and allowing the assessee a reasonable opportunity of being heard.
3. Where any amendment has the affect of reduction the assessment, the assessing Officer shall make a refund which may be due to such assessee.
4. Where such amendment has the effect of enhancing the assessment or reduction a refund already made, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable and such notice shall be deemed to be issued under section 156 and the provisions of this Act shall apply accordingly.
5. Where a valid application for rectification of mistakes has been filed by the assessee within the statutory time limit but is not disposed of by the authority within the specified time limit, it may be disposed of by that authority even after the expiry of statutory time limit on merits and in accordance with law.
6. Where the sums referred to in the first proviso under section 43B had in fact been paid on or before the due dates mentioned there in, but the evidence therefore had been omitted to be furnished along with the return, the Assessing Officer can entertain application under section 154 for rectification of the intimation under section 143(1)(a) or under section 143(3), as the case may be, and decide the same on merits.

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