154 Income Tax Act - Rectification of mistake

Section 154 of Income Tax Act 1961 - Rectification of mistake

1 (1) With a view to rectifying any mistake apparent from the record an income-tax authority referred to in section 116 may,

(a) amend any order passed by it under the provisions of this Act;

2 (b) amend any intimation or deemed intimation under sub-section (1) of section 143;

3 (c) amend any intimation under sub-section (1) of section 200A;

4 (d) amend any intimation under sub-section (1) of section 206CB.

5 (1A) Where any matter 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 6 by the assessee or by the deductor, 4 or by the collector, and where the authority concerned is the 7 8 *** Commissioner (Appeals), by the 9 Assessing Officer also.

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(3) An amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of 11the assessee or the deductor 4 or the collector, shall not be made under this section unless the authority concerned has given notice to 11the assessee or the deductor 4 or the collector of its intention so to do and has allowed 11the assessee or the deductor 4 or the collector 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.

12(5) Where any such amendment has the effect of reducing the assessment or otherwise reducing the liability of the assessee or the deductor 4 or the collector, the Assessing Officer shall make any refund which may be due to such assessee or the deductor 4 or the collector.

(6) Where any such amendment has the effect of enhancing the assessment or reducing a refund 13already made or otherwise increasing the liability of the assessee or the deductor 4 or the collector, the Assessing Officer shall serve on the assessee or the deductor 4 or the collector, as the case may be a notice of demand in the prescribed form specifying the sum payable, 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 14from the end of the financial year in which the order sought to be amended was passed.

15 (8) Without prejudice to the provisions of sub-section (7), where an application for amendment under this section is made 16 by the assessee or by the deductor 17 or by the collector 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.
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1. Subs. by Act 4 of 1988, s. 60, for sub-section (1) (w.e.f. 1-4-1989).
2. Subs. by Act 27 of 1999, s. 65, for clause (b) (w.e.f. 1-6-1999).
3. Ins. by Act 23 of 2012, s. 70(w.e.f. 1-7-2012).
4. Ins. by Act 20 of 2015, s. 38 (w.e.f. 1-6-2015).
5. Ins. by Act 31 of 1964, s. 7 (w.e.f. 6-10-1964).
6. Subs. by Act 23 of 2012, s. 70, for by the assessee (w.e.f. 1-7-2012).
7. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10-7-1978).
8. The words Deputy Commissioner (Appeals) or the omitted by Act 21 of 1998, s. 65 (w.e.f. 1-10-1998).
Earlier the quoted words substituted by Act 4 of 1988, s. 2, for Appellate Assistant Commissioner (w.e.f. 1-4-1988).
9. Subs. by Act 4 of 1988, s. 2, for Income-tax Officer (w.e.f. 1-4-1988).
10. Omitted by Act 32 of 1994, s. 38 (w.e.f. 1-6-1994). Earlier the proviso inserted by Act 18 of 1992, s. 61 (w.e.f. 14-5- 1992).
11. Subs. by Act 23 of 2012, s. 70, for the assessee (w.e.f. 1-7-2012).
12. Subs. by s. 70,ibid., for sub-section (5) (w.e.f. 1-7-2012).
13. Subs. by s. 70,ibid., for already made, the Assessing Officer shall serve on the assessee (w.e.f. 1-7-2012).
14. Subs. by Act 67 of 1984, s. 29, for from the date of the order sought to be amended (w.e.f. 1-10-1984).
15. Ins. by Act 14 of 2001, s. 65 (w.e.f. 1-6-2001).
16. Subs. by Act 23 of 2012, s. 70, for by the assessee (w.e.f. 1-7-2012).
17. Ins. by Act 20 of 2015, s. 38 (w.e.f. 1-6-2015).