Rectification Of Mistakes |Law

Concept of rectification of mistakes

Mistake in the order of income tax authority can be obvious or a patent mistake. Being the subject of law for sec 221 of income tax ordinance 2001 a person can rectify those mistakes. A court’s acquit able correction of a contractual term that is mis-stated. Mistake is an error, misconception and misunderstanding.

Chart of rectify mistakes

Authorities to rectify of mistakes

Following are the authorities which are empowered to rectify the mistakes.

i- Commissioner of income tax

ii- Commissioner of income tax (appeal)

iii- Appellate tribunal

Nature of power of mistakes

Power of rectification can be exercise in the following manners i- Suo moto ii- On application Rectification of mistakes in the orders passed by the commissioner of income tax under finance act 2003 can be read along with it.Following procedure u/s 221 shall be followed for the rectification of mistake. Tax payer shall be brought into the notice of authority to rectify any mistake in the order of tax. 

Rectification of mistakes

Where mistake is to be rectified by commissioner (appeal) and tribunal, the notice shall be filed by the commissioner. Mistake shall be brought into the notice of the commissioner and apparent on the record. Where the rectifying authority is satisfied the order of rectification shall be passed. The authority rectifying the mistake shall observe all the principles of natural justice. Rectification can be made on the grounds of,

a- Excessive income in assessment

          b- Reduction in refund

Tax

The tax payer file the return statement.He calculates to file his statement in the federal board of revenue. It is compulsory statement to file income tax return. NAB has decides the cases. Before the expiration of financial year the mistake shall be rectified. When 5 years have been passed after the date of order, no such rectification shall be passed. Object of rectification is bonafide collection of tax.