(1) The Inspecting Additional Commissioner of Taxes may call for and examine the record of any proceeding under this Act if he considers that any order passed therein by the Deputy Commissioner of Taxes is erroneous in so far as it is prejudicial to the interests of the revenue, and may, after giving the assessee an opportunity of being heard, and after making or causing to be made, such inquiry as he thinks necessary, pass such order thereon as in his view the circumstances of the case would justify, including an order enhancing or modifying the assessment or cancelling the assessment and directing a fresh assessment to be made.

(2) Where the power of the Deputy Commissioner of Taxes is exercised by a higher income tax authority under the provision of section 12, the proceedings mentioned in sub-section (1) shall be taken by the Inspecting Additional Commissioner of Taxes.

(3) No order shall be made under sub-section (1) after the expiry of 4 (four) years from the date of the order sought to be revised.

(4) Nothing in section 212 shall bar any proceeding under this section in applicable cases.

(5) In this section, an order shall be deemed to be erroneous if, in the opinion of the Inspecting Additional Commissioner—

(a) any income is misclassified in the order;

(b) any provision of this Act is misinterpreted in making the order;

(c) the order is passed without making verification which should have been made;

(d) the order is passed allowing any relief without inquiring into the claim;

(e) the order, direction or instruction issued by the Board under section 10 has not been observed or followed in the order; or

(f) the order is erroneous for reasons apparent from the record.