TaxTMI 
TaxTMI 
Comparison of section 287 "Rectification of mistake." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)
X X X X Extracts X X X X
X X X X Extracts X X X X
.... for rectification and mandates outcomes (refunds/notice of demand). The provision affects taxpayers, deductors, collectors and various income-tax authorities. Effective date or decision date: Not stated in the document. Background & Scope Statutory hooks: Clause/Section 287 is placed under "Procedure for assessment" in the Income Tax Bill/Act, 2025. The provision operates in relation to income-tax authorities referred to in section 236. The primary purpose is rectification of mistakes apparent from the record by amendment of (a) orders passed under the Act, (b) intimations or deemed intimations under a specified section (270(1) in the Act; 271(1) in the Bill (Old Version)), and (c) intimations u/s 399. The text supplies no further defini....
X X X X Extracts X X X X
X X X X Extracts X X X X
....avouring audi alteram partem before adverse amendments. The text does not elaborate statutory tests for what constitutes a mistake apparent from the record. Not stated in the document: any definition, exhaustive list or examples of "mistake apparent from the record" or standard of proof. Exceptions/Provisos Key carve-outs and conditions set by the text: * Amendments cannot relate to matters "considered and decided in any proceeding by way of appeal or revision." (sub-section (2)) * No amendment that enhances assessment, reduces a refund or otherwise increases liability shall be made without (a) notice of intention to amend and (b) a reasonable opportunity of being heard. (sub-section (4)) * Time limit: except as provided in section ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and 399, and to section 289 for deeming of notices of demand. It also imposes duties on the Assessing Officer regarding refunds and service of notice of demand for enhanced assessments. The text does not set out the content of those cross-referenced provisions; therefore, practical interpretation will depend on their terms. Potential interpretive points arising from the text alone include whether the four-year limitation interacts with any other limitation or exclusion in section 288 and how the "deemed to be issued u/s 289" treatment interacts with appeal or recovery procedures. Not stated in the document: detailed interaction with rules, notifications or earlier rectification jurisprudence. Differences between the two provisions and prac....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ntimation" where the Bill either omitted it or used slightly different phrasing (notably sub-section (8) in the Bill refers only to "order sought to be amended" while the Act says "order or intimation sought to be amended"). * Practical impact: this consistent inclusion clarifies that time limits, amendment powers and procedural safeguards apply equally to both orders and intimations. * Prescriptive language differences: Minor drafting differences appear (e.g., Bill uses "in such form as prescribed" in clause (7) vs Act's "in such form as may be prescribed"). * Practical impact: negligible substantive effect; the Act's phrasing is the standard enabling language for delegated legislation. * Other changes: The Act adds slight ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....will be critical to demonstrate that an error is or is not "apparent." The text requires written orders for amendments and service of notices of demand; retaining copies of communications will be important. Not stated in the document: evidentiary thresholds or timeline for producing documents on hearing. Key Takeaways * Section/Clause 287 empowers specified income-tax authorities to rectify mistakes apparent on the record by amending orders and certain intimations. * Amendments are excluded where the matter has been considered and decided in appeal or revision proceedings. * Before any amendment that increases liability, the authority must give notice of intention and a reasonable opportunity of being heard. * Refunds must be made ....