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2013 (3) TMI 34 - HC - Income TaxRevision u/s 264 in favor of assessee - period of limitation of one year is mandatory or directory - held that:- The Finance Act (No. 2) Act, 1988, has made it obligatory on the Commissioner to pass an order under section 264 within a period of one year from the end of the financial year in which the application is made for revision. However, in computing the period of limitation, the time taken in giving an opportunity to the assessee to be reheard and any period during which any proceedings under this section are stayed by an order or injunction of any court shall be excluded. - Further, the above time shall also not apply in cases of revisionary orders to be passed in; con sequence of or to give effect to any finding or direction in an order of the Appellate Tribunal, the High Court or the Supreme Court. If a revision has not been decided by the Commissioner within the stipulated period, it does not mean that the revision stands allowed. If the provisions of section 264(6) is held to be mandatory then the failure to decide the revision within the stipulated period would cause prejudice not only to the person who has filed the revision but also to the department. It would also defeat or frustrate the leglislative intent. The legislative intent is that the revision should be decided expeditiously, if possible within the time bound period. Failure to do so would not defeat the right of the aggrieved person. Thus, the provisions are directory only. CIT directed to decide the expeditiously - in favor of assessee.
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