(1) Where any Income-tax Authority or the Appellate Tribunal in its own discretion or on the written application of the taxpayer or on the basis of information from any other source notices an error in any order, the Income-tax Authority or the Appellate Tribunal may, by order in writing, correct such error:

Provided that no amendment shall be made under this sub-section after the expiry of 4 (four) years from the date of issue of the order.

(2) Where any taxpayer, in respect of any tax year, by written application, makes a claim to the Deputy Commissioner of Taxes to the effect that under this Act-

(a) an amount in excess of the amount payable has been paid; or

(b) no credit is given for any tax paid by the taxpayer;

In that case the Deputy Commissioner of Taxes shall, after verifying the validity and correctness of the claim of the tax payer, effect a refund or, as the case may be, a credit of the tax paid in the tax year in which such excess amount was paid.

(3) No amendment under sub-section (1) shall be made without giving the parties aggrieved a reasonable opportunity of being heard in respect of an increase in the assessment of tax or in any other way increasing the tax liability of the taxpayer.

(4) Where any defect referred to in sub-section (1) is brought to the notice of the concerned authority by the taxpayer and is not rectified within the financial year following notification to the authority, the defect shall be deemed to have been rectified under this sub-section and accordingly the provisions of this Act shall come into force.

(5) Where, after the assessment of the tax of a partner of a firm, in accordance with the assessment of that firm or under section 213, 285, 289, 292, 294, 295 or 304, in view of the reduction or increase in the income of the firm, it appears that the share of the profit or loss of the firm belongs to its partner. is not included in the assessment of income or if included is not correct, the inclusion or correction of the partner’s share, as the case may be, in the assessment of the said tax shall be made in such a manner as to be deemed to have been rectified on record under this section and sub-section (1) ) shall be effective accordingly.

(6) Where, as a result of proceedings made under section 212, tax is assessed on a firm or association of individual and in the opinion of the Deputy Commissioner of Taxes concerned it is necessary to compute the total income of a partner in the firm or, as the case may be, a member of the association of individual, the Deputy Commissioner of Taxes shall not compute the total income in such case and shall determine the amount of money payable on the basis of the said computation as if the said computation had been corrected on record under this section and the provisions of sub-section (1) shall have effect accordingly.