Section 154 - Rectification of mistake - Income-tax Act, 1961

Rectification of mistake. 154. 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.]] 12 [ (c) amend any intimation under sub-section (1) of section 200A. ] 18 [ (d) amend any intimation under sub-section (1) of section 206CB. ] 3 [(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 13 [ by the assessee or by the deductor ] 19 [ or by the collector ] , and where the authority concerned is 24 [ the Joint Commissioner (Appeals) or the Commissioner (Appeals) ] , by the 6 [Assessing] Officer also. 7 [* * *] (3) An amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of 14 [ the assessee or the deductor ] 20 [ or the collector ] , shall not be made under this section unless the authority concerned has given notice to 14 [ the assessee or the deductor ] 20 [ or the collector ] , of its intention so to do and has allowed 14 [ the assessee or the deductor ] 20 [ 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. 15 [ (5) Where any such amendment has the effect of reducing the assessment or otherwise reducing the liability of the assessee or the deductor 20 [ or the collector ] , the Assessing Officer shall make any refund which may be due to such assessee or the deductor. ] 21 [ or the collector ] (6) Where any such amendment has the effect of enhancing the assessment or reducing a refund 16 [ already made or otherwise increasing the liability of the assessee or the deductor 20 [ or the collector ] , the Assessing Officer shall serve on the assessee or the deductor, 22 [ 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 10 [from the end of the financial year in which the order sought to be amended was passed.] 11 [(8) Without prejudice to the provisions of sub-section (7), where an application for amendment under this section is made 17 [ by the assessee or by the deductor ] 23 [ 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.] ----------------------------- Notes :- 1. Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Prior to its substitution, 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 the Finance (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. 2. Substituted by the Finance Act, 1999, w.e.f. 1-6-1999. Prior to its substitution, clause (b), as substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989, read as under : (b) amend any intimation sent by it under sub-section (1) of section 143, or enhance or reduce the amount of refund granted by it under that sub-section. 3. Inserted by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964. 4. 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 Appellate Assistant Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 5. Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978. 6. Substituted for Income-tax by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 7. Proviso omitted by the Finance Act, 1994, w.e.f. 1-6-1994. Prior to its omission, proviso was inserted by the Finance Act, 1992, w.e.f. 14-5-1992. 8. Substituted for Income-tax by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 9. Substituted for Income-tax by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 10. Substituted for from the date of the order sought to be amended by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984. 11. Inserted by the Finance Act, 2001, w.e.f. 1-6-2001. 12. Inserted vide Finance Act, 2012, w.e.f. 01-07-2012. 13. Substituted vide Finance Act, 2012, w.e.f. 01-07-2012., before it was read as:- by the assessee , 14. Substituted vide Finance Act, 2012, w.e.f. 01-07-2012., before it was read as:- the assessee 15. Substituted vide Finance Act, 2012, w.e.f. 01-07-2012., before it was read as:- (5) Subject to the provisions of section 241, where any such amendment has the effect of reducing the assessment, the 8 [Assessing] Officers shall make any refund which may be due to such assessee. 16. Substituted vide Finance Act, 2012, w.e.f. 01-07-2012., before it was read as:- already made, the 9 [Assessing] Officer shall serve on the assesse 17. Substituted vide Finance Act, 2012, w.e.f. 01-07-2012., before it was read as:- by the assessee 18. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of June, 2015 19. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of June, 2015 20. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of June, 2015 21. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of June, 2015 22. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of June, 2015 23. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of June, 2015 24. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 before it was read as, the 4 [***] 5 [Commissioner (Appeals)]