TaxTMI 
TaxTMI 
Rectification of orders passed by any income-tax authority either Suo moto or on an application of assessee and AO are similar in both enactments. In case of application passing of order is mandatory.
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....ectification of orders passed by any income-tax authority either Suo moto or on an application of assessee and AO are similar in both enactments. In case of application passing of order is mandatory.<br>By: - DEV KUMAR KOTHARI<br>Income Tax<br>Dated:- 23-9-2026<br><br>Rectification of orders passed by any income-tax authority either Suo moto or on an application of assessee and AO are similar in both enactments. In case of application passing of order is mandatory. ITA 2025 ITA 1961 Observations Rectification of mistake. Rectification of mistake. 287. (1) An income-tax authority referred to in section 236, for rectifying any mistake apparent from the record, may amend any- 154. 1[(1) With a view to rectifyi....
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....ng any mistake apparent from the record an income-tax authority referred to in section 116 may, - With necessary changes and read with other clauses it is on same lines, having same significance. Suo moto rectification is discretionary upon authority. (a) order passed by it under the provisions of this Act; (b) intimation or deemed intimation under section 270(1); (c) intimation under section 399. (a) amend any order passed by it under the provisions of this Act ; (b) amend any intimation or deemed intimation under sub-section (1) of section 143; (c) amend any intimation under sub-section (1) of section 200A. (d) amend any intimation under sub-section (1) of section 206CB. With necessary changes and read with othe....
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....r clauses it is on same lines, having same significance. Suo moto rectification is discretionary upon authority. (2) Irrespective of anything contained in any law in force, the authority concerned may, amend any order or intimation under sub-section (1) in relation to any matter, other than the matter considered and decided in any proceeding by way of appeal or revision, relating to such order or intimation. (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 ....
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....other than the matter which has been so considered and decided. On same line. Amendment of any matter covered in the order, which has not been considered in appeal or revision can be amended by authority. It is discretionary. (3) Subject to the other provisions of this section, the authority concerned,-- (2) Subject to the other provisions of this section, the authority concerned- Similar (a) may make an amendment under sub-section (1) of its own motion; and (a) may make an amendment under sub-section (1) of its own motion, and May make amendment at its own motion. (b) shall make such amendment for rectifying any such mistake which has been brought to its notice by- (b) shall make such amendment for rectifying any....
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.... such mistake which has been brought to its notice by It is mandatory to pass order on application (i) the assessee or the deductor or the collector; or the assessee or by the deductor or by the collector, (ii) the Assessing Officer, if the authority concerned is the Joint Commissioner (Appeals) or the Commissioner (Appeals). and where the authority concerned is the Joint Commissioner (Appeals) or the Commissioner (Appeals)] by the Assessing Officer also. In case of first appeal, Ld. AO and assessee both can make application. It is similar under both. (4) No amendment that enhances an assessment, reduces a refund or otherwise increases the liability of the assessee or the deductor or the collector, shall be....
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.... made under this section by the authority concerned without giving to such assessee or deductor or collector, as the case may be,-- (3) An amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee or the deductor or the collector, shall not be made under this section unless the authority concerned has given An amendment that affect adversely assessee, deductor, collector shall not be made unless requirement of: (a) a notice of its intention of making such amendment; and (b) a reasonable opportunity of being heard. notice to the assessee or the deductor or the collector of its intention so to do and has allowed the assessee or the deductor or the colle....
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....ctor a reasonable opportunity of being heard. notice and reasonable opportunity of hearing are complied with (5) The income-tax authority concerned shall pass an order in writing, if an amendment is made under this section. (4) Where an amendment is made under this section, an order shall be passed in writing by the income-tax authority concerned. In case of amendment an order shall be passed in writing by the income-tax authority concerned. (6) The Assessing Officer shall make refund which may be due to the assessee or the deductor or the collector, where an amendment reduces the assessment or otherwise reduces the liability of such assessee or the deductor or the collector. (5) Where any such amendment has the effect of ....
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....reducing the assessment or otherwise reducing the liability of the assessee or the deductor or the collector, the Assessing Officer shall make any refund which may be due to such assessee or the deductor or the collector. Ld. AO shall make refund, if any arises on rectification order / amendment made by it. (7) The Assessing Officer shall serve on the assessee or the deductor or the collector, a notice of demand in such form as may be prescribed specifying the sum payable,- (6) Where any such amendment has the effect of enhancing the assessment or reducing a refund already made or otherwise increasing the liability of the assessee or the deductor or the collector, the Assessing Officer shall serve on the assessee or the deductor, o....
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....r the collector as the case may be a notice of demand in the prescribed form specifying the sum payable, In case due to amendment a demand arises, for any reason like enhancement ot assessment, reduced credit of taxes paid, interest, the ld. AO shall serve up on assessee a demand notice for such demand in prescribed form under respective enactments. (a) where an amendment enhances the assessment or reduces a refund already made or otherwise increases the liability of such assessee or the deductor or the collector; and (b) such notice shall be deemed to be issued under section 289 and the provisions of this Act shall apply accordingly. and such notice of demand shall be deemed to be issued under section 15....
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....6 and the provisions of this Act shall apply accordingly. Such notice shall be deemed ot be notice of demand issued under specific provision of two enactments relating to demands. (8) No amendment under this section, except as provided in section 288, shall be made after four years from the end of the financial year in which the order or intimation sought to be amended was passed. (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.] Limitation is similar under existing normal and common provisions under both enactments. (9) Subject to....
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.... sub-section (8), an income-tax authority referred to in sub-section (1), shall pass an order for making the amendment or refusing to allow the claim within six months from the end of the month in which the application for amendment under this section is received by it from the assessee or the deductor or the collector. 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,- ....
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.... (a) making the amendment; or (b) refusing to allow the claim.] In case of amendment on application of assessee / deductor/ or collector before any authority, and by Ld. AO in case of application for rectification of order in first appeal, the concerned authority shall pass an order in writing : (a) making the amendment; or (b) refusing to allow the claim. And limitation is to pass such order within a period of six months from the end of the month in which the application is received by it Analysis and summary: Provisions for rectification / amendment at own action of concerned authority are discretionary. This seems for the reason that in some circumstances rectification provisions ma....
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....y not be suitable and the case can be suitable for revision or reassessment. However, in case of an application by assessee before any authority who passed order or an application by the Ld. AO it is mandatory to pass order in writing either allowing or rejecting the petition. As per principals of natural justice, in case of intended rejection of application the authority should give a notice to applicant and allow a reasonable opportunity of hearing. It is mandatory to pass order either way. Significance of word "shall pass and order", is important. In view of learned author the concerned authority, before whom and application is made ( I,e, original authority who passed order to be rectified) is bound to pass an order in case of ....
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....application made by assessee or the Ld. AO.as the case may be Just passing of order and keeping in own file is also not enough, the authority must also convey the order to the applicant. This is because, otherwise, authority will tend to just mention words like rejected or considered and rejected either on application itself or in order sheet. That will amount to gross violation of principal of natural justice. In inaction on part of concerned authority meaning not passing and conveying order to the applicant can amount to application allowed or deemed allowed. This is because of language used "shall pass an order" and in both situations that is allowing or rejecting. Therefore, if an authority do not communicate with applicant and....
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.... do to pass any order, then it can reasonably be considered that application has been allowed in totality. Learned readers are requested to send their feedback and views and share their experience and knowledge on this aspect. Reply By DEV KUMAR KOTHARI as = Correction of data processing errors: Significance of word "shall pass and order", - be read as "shall pass an order" and In fifth line from last line 'do to pass any order', be read as 'do not pass any order' Dated: 23-9-2026 =============<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....