Section 47 of the Prohibition of Benami Property Transactions Act, 1988: Rectification of Mistakes
Section 47 empowers the Appellate Tribunal or any authority under the Prohibition of Benami Property Transactions Act, 1988 to correct a mistake apparent on the face of the record in an order passed by it, subject to the statutory time limit and the requirement of notice and hearing where the proposed correction may prejudice a person.
Current name of the law: The Benami Transactions (Prohibition) Act, 1988 was renamed the Prohibition of Benami Property Transactions Act, 1988 after the 2016 amendment took effect. The present page therefore uses the current statutory title while retaining the existing URL and internal links.
What does Section 47 provide?
Section 47 - Rectification of mistakes
(1) The Appellate Tribunal or any authority may, to rectify a mistake apparent on the face of the record, amend an order passed by it under the provisions of the Act within one year from the end of the month in which that order was passed.
(2) Where the proposed amendment is likely to affect a person prejudicially, no such amendment can be made unless that person is given notice of the proposed action and an opportunity of being heard.
The wording above reflects the current substance of Section 47. For the exact statutory text, refer to the official India Code version of the Act.
Meaning of "mistake apparent on the face of the record"
Section 47 is a rectification provision. It is intended for an obvious or apparent error in an order and is not, by its wording, a general power to reopen the entire dispute or substitute a fresh decision merely because another view may also be possible. Whether a particular error qualifies for rectification depends on the nature of the mistake and the record of the proceeding.
Who may rectify an order under Section 47?
Under the current Section 47(1), the power is available to the Appellate Tribunal or any authority, in relation to an order passed by that body under the provisions of the Act. This is broader than the earlier formulation of the provision.
Time limit for rectification
The rectification must be made within one year from the end of the month in which the relevant order was passed. The statutory period is therefore calculated from the end of the month of the order, not merely from the calendar date on which the order was made.
Notice and opportunity of hearing
Section 47(2) protects a person against a prejudicial rectification without due process. If the proposed amendment is likely to affect a person adversely, the authority must give that person:
- notice of the intention to amend the order; and
- an opportunity of being heard before the amendment is made.
This requirement incorporates a statutory hearing safeguard where rectification may operate to a person's prejudice.
2019 amendment to Section 47
Section 47(1) was substituted by Section 178 of the Finance (No. 2) Act, 2019 with effect from 1 September 2019. Before that substitution, subsection (1) referred specifically to the Appellate Tribunal and the Adjudicating Authority rectifying orders made under Sections 26 and 46 respectively.
The substituted wording is wider. It refers to the Appellate Tribunal or any authority and to an order passed by it under the provisions of the Act, while retaining the one-year time limit.
Practical points under Section 47
- The power is for rectification of a mistake apparent on the face of the record.
- The authority must act within the statutory one-year period.
- The current provision extends to the Appellate Tribunal or any authority in respect of an order passed by it under the Act.
- A prejudicial amendment requires prior notice and an opportunity of hearing.
- Section 47 should be read with the current text of the Act and applicable amendments rather than only the wording originally inserted in 2016.
Official legal sources
The official text of the Act is available from India Code - Prohibition of Benami Property Transactions Act, 1988. The Income Tax Department also publishes materials relating to the Prohibition of Benami Property Transactions Act and the Prohibition of Benami Property Transactions Rules, 2016.
Related provisions
Section 46 deals with appeals to the Appellate Tribunal, while Section 48 deals with the right to representation before the Appellate Tribunal. These neighboring provisions may be relevant when Section 47 rectification arises in appellate proceedings.