Section 287 - Rectification of mistake.

Tax authority may correct apparent mistakes in assessment orders, with notice and hearing for increases; four-year amendment limit

A tax authority may rectify any apparent mistake on its orders or intimations relating to assessments, notices or deemed intimations, except matters already decided on appeal or revision. The authority may act on its own motion or on application by the taxpayer, deductor or collector, and must correct mistakes brought to its notice by those parties or by an assessing officer where applicable. Any amendment that increases liability, reduces a refund or enhances assessment requires prior notice and a reasonable hearing. Amendments must be recorded in a written order; refunds are to be made where liability is reduced and demand notices issued where liability increases. Time limits: generally four years to amend and six months to dispose of applications.