173. Correction of errors.-

173.  Correction  of  errors.- 

¹[(1) Where an income tax authority or the Appellate Tribunal finds by own motion or based on written application from the assessee or information from any other source that an error apparent from record has been made in any order passed by it, the income tax authority or the Appellate Tribunal may amend the error by order in writing:

Provided that no amendment under this sub-section shall be made after the expiration of four years from the date of the order sought to be amended.

 (1A) Where an assessee, by an application in writing in relation to an assessment year, brings to the notice of the Deputy Commissioner of Taxes of the claim that-

(a) a sum payable under this Ordinance has been paid in amount higher than the due amount, or

(b) the due credit of a sum paid under this Ordinance has not been given,

 the Deputy Commissioner of Taxes shall give credit of the amount in the assessment year in which the sum was to be given credit if the claim of the assessee is found valid and correct after due verification.]
 

(1)  Any  income  tax  authority  or  the  Appellate Tribunal  may,  by  order  in  writing,  amend  any  order  passed  by  it  so  as  to correct any error apparent from the record either of its own motion or on the error having been brought to its notice by the assessee or any other income tax authority and all the provisions of this Ordinance as may be applicable shall have effect accordingly.

(2) No amendment under sub-section (1) which has the effect of enhancing an assessment  or  reducing  a  refund  or  otherwise  increasing  the  liability  of  the assessee shall be made unless the parties affected thereby have been given a reasonable opportunity of being heard.

(3) Where any such error as is referred to in sub-section (1) is brought to the notice of the authority concerned by the assessee and no amendment is made by such authority within the financial year next following the date in which the error is brought to its notice, the amendment under that sub -section shall be deemed to have been made so as to correct the error and all the provisions of this Ordinance shall have effect accordingly.

²[(4) No amendment under sub-section (1) shall be made after the expiration of four years from the date of the order sought to be amended.

(5) Where in respect of any completed assessment of a partner in a firm it is found on the assessment of the firm or on any reduction or enhancement made in the income of the firm under sections 120,³[121A],156, 159,  161 or 162 that  the  share  of  the  partner  in  the  profit  or  loss  of  the  firm  has  not  been included in the assessment of the partner, or, if included, is not correction, the inclusion of the share in the assessment or the correct thereof, as the case may be,  shall  be  deemed  to  be  correction  of  an  error  apparent  from  the  record within the meaning of this section, and the provisions of sub-section (1) shall apply thereto accordingly, the period of four years referred to in sub-section

(4) being computed from the date of the final order passed in the case of the firm.

(6) Where as a result of proceedings initiated under section 93, a firm or an association  of  persons  is  assessed,  and  the  Deputy  Commissioner  of  Taxes concerned is of opinion that it is necessary to  compute the total income of a partner in the firm or a member of the association of persons, as the case may be,  the  Deputy  Commissioner  of  Taxes  may  proceed  to  compute  the  total income and determine the sum payable on the basis of such computation as if the computation is a correction of an error apparent from the record within the meaning  of  this  section,  and  the  provisions  of  sub-section  (1)  shall  apply accordingly,  the  period  of  four  years  specified  in  sub-section  (4)  being reckoned  from  the  date  of  the  final  order  passed  in  the  case  of  the  firm  or association of persons, as the case may be.

(7) Subject to the provisions of sub-section (3) where an amendment is made under  this  section,  an  order  shall  be  passed  in  writing  by  the  income  tax authority concerned or the Appellate Tribunal, as the case may be.

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¹ Ins by F.A. 2017

² Omited by F.A. 2017

³Subs. for "121" by F.A. 2014

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