Revision in Favour of Assessee
Section 264 empowers the PCCIT/CCIT/PCIT/CIT (“Commissioner”) to revise any order passed by a subordinate authority either Suo motu (on their own motion), or on an application filed by the assessee. The revision may be undertaken only in favour of the assessee and cannot result in any order prejudicial to the assessee.
- Orders Eligible for Revision– The Commissioner may revise only those orders which are passed by a subordinate Assessing Officer.
- Orders not Eligible for Revision– Orders that cannot be revised under Section 264 include:
o Orders appealable before CIT(A), JCIT(A), or ITAT where:
➢ The time limit for filing the appeal has not expired; or
➢ The assessee has not waived his right to appeal.
o Orders that have been made the subject of an appeal to the JCIT(A), CIT(A), or ITAT.
o CBDT, vide Circular No. 367, dated 26-07-1983, clarified that if the appeal is dismissed as withdrawn, incompetent, or time-barred, it shall not be considered the ‘subject of an appeal’, and revision under Section 264 may still be possible.
- Time Limit for Making Application—Theapplication must be made within 1 year from the date of communication of the order or the date of knowledge, whichever is earlier. Condonation of delay is permitted if sufficient cause is shown. The application filed under Section 264 must be accompanied by a fee of Rs. 500.
- Time Limit for Passing the Revisionary Order –The revision order must be passed within 1 year from the end of the financial year in which the assessee makes the application. If revision is initiated suo motu, the order must be passed within 1 year from the date of the original order. A revision order under this provision is not appealable to the ITAT.
However, no time limit applies where the revision is done to give effect to a direction of the order of the ITAT, High Court or Supreme Court.
While computing the limitation period, time taken for rehearing under Section 129, and time under stay by the court are excluded.