CAF-2 · Chapter 15 · Question 6 of 15
An assessment order can be amended by the Commissioner if he has acquired "definite information" from an audit. Which of the following situations also legally empowers the Commissioner to amend an assessment order under Section 122(5A)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) The Commissioner considers the original assessment to be erroneous in so far as it is prejudicial to the interest of revenue.
Explanation
The Commissioner may amend, or further amend, an assessment order if he considers that it is erroneous in so far as it is prejudicial to the interest of revenue. Note that a mere change of opinion does not constitute definite information or make the assessment erroneous and prejudicial.
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