TMI BlogRevision of orders prejudicial to revenue - Section 263X X X X Extracts X X X X X X X X Extracts X X X X ..... directing a fresh assessment. However, he has to pass an order only after giving the assessee an opportunity of being heard and after making or causing to be made such enquiry as deems necessary. Besides the Principal Commissioner/Commissioner, the Chief Principal Commissioner/Chief Commissioner have also been vested with power of revision U/s 263 [Amended by FA, 2021] However, the Principal Commissioner or Commissioner can revise the order passed by the Assessing Officer only if he considers that the order passed is prejudicial to the interests of the revenue. Explanation 1: - For the removal of doubts, it is declared that the Principal Commissioner or commissioner have also been vested with power of revision u/s 263 ,- An o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court in the case of the assessee or any other person. Time limit for passing revision order u/s 263 : The order under this section shall not be made after the expiry of two years from the end of the financial year in which order sought to be revised was passed. However, an order under this section may be passed at any time to give effect to the finding or direction contained in an order of the High Court or Supreme Court. No time limit in the following cases: An order in revision under this section may be passed at any time in the case of an order which has been passed in consequence of, or to give effect to, any finding or direction contained in an order of the Appellate Tribunal, National Tax Tribunal, the High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee has claimed excessive loss, deductions and relief. Mistake apparent from record. Section 263 cannot be invoked if the CIT is merely of the opinion that a particular deduction should not have been allowed to the assessee. As in section 147 , in section 263 also revision is not possible on account of change in personal opinion. Note 3:- An order can be said to be prejudicial to the revenue if Income has been under assessed Losses have been over assessed Income has been assessed at lower rate Excessive loss, deduction, allowances and reliefs have been allowed to the assessee. Note 4:- If the Assessing Officer has completed the assessment without initiating penalty proceedings, then the order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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