Section 287 — Rectification of Mistake | ITA 2025

Section 287 — - RECTIFICATION OF MISTAKE

Section 287 is the substantive equivalent of 1961 s. 154 -- the foundational RECTIFICATION provision authorising income-tax authorities to rectify any MISTAKE APPARENT FROM THE RECORD in their orders / intimations. The provision is the workhorse for correcting arithmetic errors / misapplication of clear law / clerical mistakes. SCOPE: only mistakes 'apparent from the record' (objective, requiring no detailed argument). Time-limit: 4 YEARS from end of FY in which order to be amended was passed. Initiation: by AO (suo moto) OR on application by assessee. Distinct from s. 270 (assessment) and s. 279 (reassessment of escaped income) which involve substantive reopening; s. 287 only fixes apparent mistakes.

Statutory text — Income-tax Act, 2025

Marginal note -- Rectification of mistake

(1) An income-tax authority referred to in section 236, for rectifying any mistake apparent from the record, may amend any—

(a) order passed by it under the provisions of this Act;

(b) intimation or deemed intimation under section 270(1);

(c) intimation under section 399.

(2) Irrespective of anything contained in any law in force, the authority concerned may, amend any order or intimation under sub-section (1) in relation to any matter, other than the matter considered and decided in any proceeding by way of appeal or revision, relating to such order or intimation.

(3) Subject to the other provisions of this section, the authority concerned,—

(a) may make an amendment under sub-section (1) of its own motion; and

(b) shall make such amendment for rectifying any such mistake which has been brought to its notice by—

(i) the assessee or the deductor or the collector; or

(ii) the Assessing Officer, if the authority concerned is the Joint Com- missioner (Appeals) or the Commissioner (Appeals).

(4) No amendment that enhances an assessment, reduces a refund or otherwise increases the liability of the assessee or the deductor or the collector, shall be made under this section by the authority concerned without giving to such assessee or deductor or collector, as the case may be,—

(a) a notice of its intention of making such amendment; and

(b) a reasonable opportunity of being heard.

(5) The income-tax authority concerned shall pass an order in writing, if an amend- ment is made under this section.

(6) The Assessing Officer shall make refund which may be due to the assessee or the deductor or the collector, where an amendment reduces the assessment or otherwise reduces the liability of such assessee or the deductor or the collector.

(7) The Assessing Officer shall serve on the assessee or the deductor or the collector, a notice of demand in such form as may be prescribed specifying the sum payable,—

(a) where an amendment enhances the assessment4 or reduces a refund already made or otherwise increases the liability of such assessee or the deductor or the collector; and

(b) such notice shall be deemed to be issued under section 289 and the provisions of this Act shall apply accordingly.

(8) No amendment under this section, except as provided in section 288, shall be made after four years from the end of the financial year in which the order or inti- mation sought to be amended was passed.

(9) Subject to sub-section (8), an income-tax authority referred to in sub-section (1), shall pass an order for making the amendment or refusing to allow the claim within six months from the end of the month in which the application for amendment under this section is received by it from the assessee or the deductor or the collector. Other amendments.

Corresponding provision — 1961 regime

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
INCOME-TAX ACT, 2025 -- s. 287	INCOME-TAX ACT, 1961 -- s. 154
Sub-s. (1) -- Authority may rectify mistake apparent from record	1961 s. 154(1)
Sub-s. (3) -- Notice to assessee + opportunity	1961 s. 154(3)
Sub-s. (5) -- Refund / payment consequential	1961 s. 154(5)
Sub-s. (7)-(8) -- Time-limit 4 years	1961 s. 154(7)
s. 288 - other amendments (cross-assessee)	1961 s. 155

STATUTORY ARCHITECTURE

'MISTAKE APPARENT FROM RECORD' STANDARD: (a) Mistake must be SELF-EVIDENT from the record without elaborate argumentation; (b) Mistake of FACT or LAW both qualify; (c) DEBATABLE / DISPUTED issues NOT rectifiable -- those need appellate route; (d) ARITHMETICAL errors / misapplication of clear law / typographical / cross-reference errors typically rectifiable. INITIATION (sub-s. 1): (a) AUTHORITY suo-moto: AO / Joint CIT / NFAC may rectify own order; (b) ASSESSEE APPLICATION: file for rectification via e-filing portal under specific category; (c) Assessee can apply for rectification of order at ANY level (AO / CIT(A) / ITAT / etc. each rectifies own orders). PROCEDURE (sub-s. 3): (a) Notice to ASSESSEE specifying proposed rectification; (b) Opportunity of being heard (if rectification adverse to assessee); (c) Order specifying rectification rationale. TIME-LIMIT (sub-s. 7-8): 4 YEARS from end of FY in which original order passed. STRICT; barred-by-time = invalid rectification.

DISTINCTION FROM RELATED PROVISIONS

(i) S. 270(1) intimation: auto-processing adjustments via CPC; limited to enumerated categories in sub-s. (1)(a)(i)-(vi). (ii) S. 270(7): scrutiny assessment; substantive examination. (iii) S. 279 reassessment: income escaping assessment; substantive reopening. (iv) S. 287 rectification: mistake apparent from record only; cannot reopen substantive issues. (v) S. 288 other amendments: cross-assessee consequential adjustments. PRACTITIONER: identify the right provision for the specific issue; rectification cannot substitute for substantive review.

CASE LAW

(i) Volkart Bros v. ITO (SC, 1971) -- 'mistake apparent from record' standard; debatable issues outside scope. (ii) Hero Cycles v. CIT (P&H HC) -- arithmetic error rectifiable; legal issue requiring argument NOT. (iii) PCIT v. Pheroze Framroze Undrigar (Bom HC) -- post-FA 2010 ITAT order rectification; record includes own order materials. (iv) Various HC decisions: time-limit strictly enforced; jurisdictional defects.

PRACTITIONER NOTES

(i) RECTIFICATION OPPORTUNITY -- always check assessment / intimation / appellate orders for arithmetic / cross-reference / clerical mistakes. (ii) APPLICATION TIMING -- 4 years from FY-end of original order; calendar diary. (iii) E-FILING PROCEDURE -- portal-based application under 'Rectification' category; track status. (iv) DEBATABLE ISSUES NOT RECTIFIABLE -- if substantive disagreement, use appellate route (CIT(A) / ITAT) instead. (v) ADVERSE RECTIFICATION DEFENCE -- if AO proposes adverse rectification, response within hearing window; preserve appellate rights.

CROSS-REFERENCES

Section 270 -- Assessment.
Section 279 -- Reassessment.
Section 288 -- Other amendments (cross-assessee).
Sections 357 / 359 -- Appellate framework (alternative for substantive issues).

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