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

Revision of other orders - Section 264 Applicability 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) 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) ] Modes of Revision Suo motu (on their own motion): The authority can call for records and revise the order within one year from the date of the order section 264(2) . On application by the assessee : The taxpayer can apply for revision within one year from the date of communication of the order or the date on which the assessee came to know of it, whichever is earlier section 264(3) . Time Limits and Limitation Periods Suo Motu Revision: Section 264(2) imposes a strict time limit, 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) ] Revision on Application:- 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. Limitation for Passing Orders: Sub-section (6), inserted by the Finance (No. 2) Act, 1998, mandates that an order on an assessee s application must be passed within one year from the end of the financial year in which the application is made. The Explanation to this sub-section provides for exclusion of periods 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 the period commencing on the date on which stay on any proceeding under this section was granted by an order or injunction of any court and ending on the date on which certified copy of the order vacating the stay was received by the jurisdictional Principal Commissioner or Commissioner (Substituted vide Section 78 of the Finance Act, 2025 ) ]. [ 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) ] Restrictions and Exceptions [ section 264(4) ] The PCCIT/CCIT/PCIT/CIT shall not revise any order under this section in the following cases- Where an appeal lies and the time for appeal has not expired 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 an appeal is pending where the order is pending on an appeal before the Deputy Commissioner (Appeals); or Where the order has been appealed 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. Fees Every application by an assessee for revision under this section shall be accompanied by a fee of Rs.500 . [ section 264(5) ] Notes: - Under section 264, only the order of Assessing Officer can be revised. Appeal cannot be filed against order u/s 264. 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. 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]. 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).