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2023 (9) TMI 220 - HC - Income TaxRevision u/s 264 - power of the Commissioner u/s 264 - Exclusion of income declared under Income Declaration Scheme, 2016 ("IDS") - declaration of Petitioner under the IDS was accepted - HELD THAT:- Exercise of power under Section 264 was not subject to the power of the Assessing Officer to make adjustment under Section 143(1) of the Act. The Court held that power of the Commissioner under Section 264 is rather wide and even the errors committed could be rectified. Commissioner is bound to apply his mind to the question whether Petitioner's income was taxable and to what extent. Admittedly, amount payable under the IDS has been paid. Section 188 of the IDS provides that the amount of undisclosed income declared in accordance with 183 shall not be included in total income of the declarant for any assessment year for the Income-tax Act, if the declarant makes the payment of tax and surcharge referred to in Section 184 and the penalty referred to in Section 185, by the date specified under Sub-section 1 of Section 187. Petitioner having paid the tax and surcharge and the penalty with interest, amount of undisclosed income cannot be included in the income of the declarant/petitioner. Therefore, in our view, Commissioner should have exercised his power u/s 264 of the Act and decide the matter on merits. We hereby quash and set aside the impugned order dated 26th March, 2021 and remand the matter to Respondent No. 1 to decide the matter on merits. Before passing any order, Respondent No. 1 shall give personal hearing to Petitioner.
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