Revision of other orders - Section 264 - Income Tax - Ready Reckoner - Income Tax

Revision of other orders - Section 264 In the case of any order other than an order to which section 263 applies passed by an authority subordinate to him, the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner (PCCIT/CCIT/PCIT/CIT) may, either of his own motion or on an application by the assessee for revision , call for the record of any proceeding under this Act in which any such order has been passed and may make such inquiry or cause such inquiry to be made and, subject to the provisions of this Act, may pass such order thereon, not being an order prejudicial to the assessee, as he thinks fit. [ section 264(1) ] The PCCIT/CCIT/PCIT/CIT can revise the order on his own motion within 1 year from the date of passing an order by AO. [ section 264(2) ] If assessee applies for revision , the application must be made within one year from the date on which the order in question was communicated to him or the date on which he otherwise came to know of it, whichever is earlier :. However, that the PCCIT/CCIT/PCIT/CIT may, if he is satisfied that the assessee was prevented by sufficient cause from making the application within that period, admit an application made after the expiry of that period. [ section 264(3) ] If assessee has applied for revision the CIT/PCIT/CCIT/PCCIT has to pass an order within 1 year from the end of FY in which application was made by the assessee. The PCCIT/CCIT/PCIT/CIT shall not revise any order under this section in the following cases- where an appeal against the order lies to the Deputy Commissioner (Appeals) or to the Joint Commissioner (Appeals) or the Commissioner (Appeals) or to the Appellate Tribunal but has not been made and the time within which such appeal may be made has not expired, or, in the case of an appeal to the Joint Commissioner (Appeals) or the Commissioner (Appeals) or to the Appellate Tribunal, the assessee has not waived his right of appeal ; or where the order is pending on an appeal before the Deputy Commissioner (Appeals); or where the o rder has been made the subject of an appeal - to the Joint Commissioner (Appeals) or the Commissioner (Appeals) or - to the Appellate Tribunal. [ section 264(4) ] Every application by an assessee for revision under this section shall be accompanied by a fee of Rs.500 . [ section 264(5) ] On every application by an assessee for revision under this sub-section, made on or after the 1st day of October, 1998, an order shall be passed within one year from the end of the financial year in which such application is made by the assessee for revision. [ section 264(6) ] - In computing the period of limitation for the purposes of section 264(6) , the time taken in giving an opportunity to the assessee to be re-heard under the proviso to section 129 and any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded. Exception of Section 264(6) - Notwithstanding anything contained in Section 264(6), an order in revision under sub-section (6) may be passed at any time in consequence of or to give effect to any finding or direction contained in an order of the Appellate Tribunal, the High Court or the Supreme Court. [ section 264(7) ] Assessee can either prefer an appeal or can apply to CIT/PCIT/CCIT/PCCIT for revision u/s 264. Bothe remedies cannot be available simultaneously, even if they pertains to different matters [Total Merger]. Appeal cannot be filed against order u/s 264. Notes: - Under section 264, only the order of Assessing Officer can be revised. Intimation or deemed intimation under section 143(1) is not an order and therefore cannot be revised under section 264. CIT under section 264 can declare the assessment to be void ab-initio. CIT under section 264 can cancel/set aside the order of assessment of the Assessing Officer and direct him to make a fresh assessment and such directions shall not be prejudicial to the assessee. Revision under section 264 is possible if the assessee has not filed an appeal to CIT(A) and - The time period for filing an appeal to CIT(A) has expired 30 Days or - Where the time for filing appeal to CIT(A) has not expired, the assessee has waived his right to appeal to CIT(A).