Section 264(4)(c) of the Income-tax Act, 1961--Scope of the expression 'subject of an appeal'--Clarification regarding - Income Tax - 367/1983

Section 264(4)(c) of the Income-tax Act, 1961--Scope of the expression 'subject of an appeal'--Clarification regarding Circular No. 367 Dated 26/7/1983 Section 264(4)(c) of the Income-tax Act, 1961, provides that the Commissioner shall not revise any order under that section where the order has been made the subject of an appeal to the Commissioner (Appeals) or to the Appellate Tribunal. A doubt has been raised whether in the following situations the order can be said to have been made 'subject of an appeal': (i) where the appeal was withdrawn by the assessee and it was dismissed as such; (ii) where the appeal was dismissed on the ground that the appeal was incompetent; (iii) where the appeal was dismissed on ground of limitation. 2. The Board are of the view that the order cannot be said to have been made 'subject of an appeal' if the appeal has been disposed of by the Commissioner (Appeals) or the Appellate Tribunal without passing an order under section 251(1) or 254(1) on merits. (Sd.) K.M. Sultan, Under Secretary, Central Board of Direct Taxes.