(1) The Inspecting Additional Commissioner of Taxes may, if he considers that an order passed by the Deputy Commissioner of Taxes is erroneous and prejudicial to the interest of the revenue, may summon and inspect the records of the proceedings conducted under this Act and after giving the taxpayer an opportunity to be heard and after conducting such inquiry as he thinks necessary, may issue such order for the assessment of tax afresh by extending or modifying or canceling the tax assessment order including issuing such order as may be just in view of the circumstances.

2) Where a higher Income-tax authority exercises the powers of the Deputy Commissioner of Taxes under section 12, the Commissioner of Taxes shall carry out the proceedings referred to in sub-section (1).

(3) No order under sub-section (1) shall be issued to amend any order after the expiry of 4 (four) years from the date of its issue.

(4) Nothing in section 212 shall, as the case may be, preclude the taking of any proceedings under this section.

(5) Any order under this section shall be deemed to be erroneous if the Inspecting Additional Commissioner of Taxes is of the opinion that,-

(a) category of income is wrong in the order;

(b) in passing the order, any provision of this Act has been misinterpreted;

(c) the order is issued without any verification despite the requirement of verification;

(d) an order allowing the exemption has been passed without any inquiry into the exemption claimed;

(e) any order, instruction or direction passed by the Board under section 10 has not been complied with or followed; or

(f) It is clear from the record that the order is defective.