Clause 167 - Rectification of mistake - Direct Taxes Code Bill, 2009

Rectification of mistake 167. (1) An income-tax authority may amend any order passed, or intimation issued, by it under this Code so as to rectify any mistake apparent from the record. (2) Subject to sub-section (4), no amendment under this section shall be made after two years from the end of the financial year in which the order sought to be amended was passed. (3) For the purposes of this section, a mistake in the order, or intimation, sought to be amended shall, without prejudice to the generality of sub-section (1), be deemed to be apparent from the record, if the order, or intimation, is not in accordance with- (a) the decision of the Supreme Court, or the jurisdictional High Court, rendered subsequent to the passing of such order or intimation; (b) the amendment to this Code made subsequent to the passing of such order or intimation; (c) any finding, or direction, contained in an order passed in the case of the assessee for any other financial year by (i) any authority, or Court, in any proceeding under this Code by way of appeal, reference or revision; or (ii) a Court in any proceeding under any other law in so far as it has a bearing on the liability under this Code; or (d) any finding, or direction, contained in an order passed in the case of any other assessee for any financial year by- (i) any income-tax authority under the Code; or (ii) by a court in any proceeding under any law in so far as it has a bearing on the liability under this Code. (4) The income-tax authority shall not make any amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, unless the authority concerned has given to the assessee a reasonable opportunity of being heard. (5) The income-tax authority concerned may make an amendment,- (a) on its own motion; or (b) on the application made to it by the assessee or, as the case may be, by the Assessing Officer. (6) Any application received by an authority for amendment of an order shall be decided within a period of six months from the end of the month in which such application is received by it, failing which an order shall be deemed to have been made rejecting such application. (7) In a case where the order has been decided in appeal or revision, the power of the authority to amend the order, or intimation, shall be restricted to matters other than those decided in appeal or revision. (8) Without prejudice to the generality of the foregoing provisions, mistake apparent from record in relation to an order, or intimation, shall include a mistake which becomes apparent under any prescribed circumstances arising after the date of passing of the order or intimation. (9) The Board may prescribe the date from which the period of two years specified under sub-section (2) shall be reckoned for the purposes of amendment.