Mistake In Income Tax Order

An income tax order is a communication sent by an assessing officer to a taxpayer alerting them that a specific amount of tax is due. An evaluating officer may make a mistake when passing an order. The current article discusses the method to be followed if the officer makes an error in the income tax order.

Rectification Apparent From Record

An assessment officer may make a mistake when issuing an assessment, appeal, or revision order, for example. If certain errors are visible on the record, the assessing officer has the authority to perform the following:

  • The Assessing Officer has the authority to correct any order of assessment, refund, or order passed by him.
  • Any notice, considered or otherwise, may be amended by the Assessing Officer or a designated Income Tax authority. Before the start of assessment proceedings, notices must be provided to the assessee.
  • The Commissioner has the authority to revise any orders issued by him under Section 263. Section 263 of the Income Tax Act of 1961 empowers the Commissioner to request and examine the records of a case under the Act, as well as alter any orders that he judges to be erroneous and harmful to the revenue’s interests.
  • The Commissioner (Appeals) has the authority to reverse any orders made by him under Section 250. Section 250 deals with appeals and other related situations, and the Commissioner is very important in these matters.
  • The Income Tax authorities indicated in Section 116 (the several Deputy Commissioners) have the authority to change any orders issued by them.

In general, the only person with the authority to change the order is the one who issued it. As a result, there is no room for cross-functionality under the law. Furthermore, orders subject to appeals/revision cannot be rectified by the authority, particularly the specific provision under appeal, implying that all other components of the order can be amended except the ones under appeal.

Requesting Rectification For Mistake In Income Tax Order

Mistake In Income Tax Order

Income Tax authorities may correct their move or an application submitted by the assessee/deductor/collector bringing the error to the attention of the relevant authorities. If a Commissioner (Appeals) makes a mistake, the Assessing Officer may bring it to his attention. Subject to the required conditions, the Appellate Tribunal may also correct any of his errors.

Time Limit For Correcting An Error In An Income Tax Order

No orders can be issued after the four-year period in which the order was requested has expired. This is not to be confused with the original order date. As a result, whether an order is changed, set aside, or otherwise, the time will be four years from the date of the order.

Hearing

The assessee must be allowed to be heard, especially in situations when the affected individual may be in danger. Risks could include ‘improving an assessment, lowering a refund, or increasing responsibility.’

Revised Income Tax Order 

Before beginning the correction process, the appropriate authority must issue a written order. If the authority chooses not to correct, he or she is directed to do the same. If the assessee is required to make an additional tax payment upon rectification, a notice of demand must be delivered to the assessee/deductor/collector. A notice of demand is a notice that requires the assessee to make the necessary payments.