TMI Blog2023 (9) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... , in our view, the Commissioner is duty bound to apply his mind to the application filed by the assessee and pass such order thereon. Section 264 of the Act also empowers respondent no. 1 to call for the record of any proceedings under the Act in which any order has been passed and make such inquiry or cause such inquiry to be made and pass such order as he thinks fit. Therefore, if respondent no. 1 feels that detailed inquiry is necessary and he will be hard pressed for time, he may cause such inquiry made by the AO and direct the AO to file a report. In the present case, as per petitioner in his return of income he has made mistakes as noted earlier in this order. Looking at the mistake, it is rather obvious that it was not a deliberat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id not grant credit of petitioner s legitimate tax credit in respect of tax deducted by one of its two employers and respondent no. 3 correctly granted credit of the tax deducted at source by the employer for Assessment Year 2013-2014 though not claimed by petitioner in his return. Petitioner then filed his return of income for Assessment Year 2014-2015 showing the correct income. 4. In view of the above, petitioner filed an application under Section 264 of the Act. Petitioner had, for Assessment Year 2013-2014, not filed return of income under Section 139(1) of the Act but filed under Section 139(4) of the Act. Prior to the Finance Act, 2016, sub-section 4 of Section 139 provided that any person who has not furnished a return within the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 27th March 2017 passed in the application under Section 264 of the Act. That application of petitioner came to be rejected by an order dated 21st September 2021. Petitioner has, therefore, impugned in this petition both the order dated 27th March 2017 passed under Section 264 of the Act and order dated 21st September 2021 passed under Section 154 of the Act and the consequent communication dated 17th October 2015. 5. In the order dated 21st September 2021 respondent no. 1 admits that he had power to entertain the application under Section 264 of the Act by accepting that intimation under Section 143(1) of the Act was an order subject to revision under Section 264. In paragraph 5 of the order dated 21st September 2021 respondent no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5, held as under : 35. From the various judicial pronouncements, it is settled that the powers conferred under section 264 of the Act are very wide. The Commissioner is bound to apply his mind to the question whether the petitioner was taxable on that income. Since section 264 uses the expression any order , it would imply that the section does not limit the power to correct errors committed by the subordinate authorities but could even be exercised where errors are committed by assesses. It would even cover situations where the assessee because of an error has not put forth a legitimate claim at the time of filing the return and the error is subsequently discovered and is raised for the first time in an application under Section 264. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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