Revision under Section 264 of Intimation Issued Under Section 143(1)

ISSUE FOR CONSIDERATION

Section 264 is one of the important provisions under the Act beneficial to the assessee, whereunder the higher authority has been given the power to revise any order passed by the lower authority and pass a revisionary order in favour of the assessee. The CIT or PCIT or CCIT or PCCIT (referred to as CIT hereafter) may, either of his own motion or on an application made by the assessee in this regard, revise any order passed by any authority which is subordinate to him. The CIT has to pass an order as he thinks fit, which cannot be prejudicial to the assessee.

Section 264 reads as under:

“Revision of other orders.

264. (1) 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 may, either of his own motion or on an application by the assessee for revision, 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.