2024 (10) TMI 179 - HC - Income Tax

Revision petition u/s 264 - Assessment proceedings were conducted, but the petitioner did not participate - petitioner had filed the return of income and had claimed exemption. An audit report in Form 10B was also filed by the assessee within the due date - HELD THAT - As per sub-section (3) of Section 264, a revision application is required to be made within one year from the date on which the relevant order was communicated to the revision applicant. In this case, the assessment order is dated 23.09.2022 and the revision application was filed on 26.12.2022. Hence, the petition was filed well within the period of limitation. Once a petition is filed within the period of limitation, it becomes necessary for the authority receiving such petition to consider and dispose of such petition on merits. Sub-section (1) of Section 264 confers wide powers to pass orders in revision either suo motu or on application. The petitioner asserts that the entire expenditure was disallowed in the assessment order and has requested for a revision of such order. It is necessary to examine the revision application on merits and dispose of the same in accordance with law. Since this was not done, the matter requires reconsideration.

Summary

The High Court of Madras ruled in a writ petition challenging the rejection of a revision petition under Section 264 of the Income Tax Act, 1961. The petitioner filed the return of income for the assessment year 2020-2021, claimed exemption, and submitted an audit report in Form 10B. Assessment proceedings were conducted, but the petitioner did not participate. The assessment order was issued, and the petitioner filed a revision petition within the limitation period. The court found that the revision petition was filed within the period of limitation and should be considered on merits, setting aside the impugned order and remanding the matter for reconsideration. The writ petition was disposed of without costs.