Revision u/s. 264 — Scope of power of Commissioner u/s. 264 — Capital gain — Exemption u/s. 54F — Failure to claim exemption u/s. 54F in the return — Revised return not filed — Claimed raised in revision u/s. 264 — Commissioner rejected application u/s. 264 — Held by the High Court that the Power of Commissioner is wide enough to grant relief even for the assessee’s errors and mistakes — Power u/s. 264 is intended to prevent miscarriage of justice and grant relief even where errors are committed by the assessee — Rejection order quashed and set aside — Matter remanded to the Principal Commissioner to consider afresh and decide in accordance with law.

18. Nisarg Ajaykumar Vakharia v. Principal CIT:

(2026) 488 ITR 75 (Bom): 2026 SCC OnLine Bom 3455:

A. Y. 2022-23: Date of order 03/02/2026:

S. 54F and 264 of ITA 1961

Revision u/s. 264 — Scope of power of Commissioner u/s. 264 — Capital gain — Exemption u/s. 54F — Failure to claim exemption u/s. 54F in the return — Revised return not filed — Claimed raised in revision u/s. 264 — Commissioner rejected application u/s. 264 — Held by the High Court that the Power of Commissioner is wide enough to grant relief even for the assessee’s errors and mistakes — Power u/s. 264 is intended to prevent miscarriage of justice and grant relief even where errors are committed by the assessee — Rejection order quashed and set aside — Matter remanded to the Principal Commissioner to consider afresh and decide in accordance with law.

For A. Y. 2022-23, the assessee filed the return of income on July 19, 2022, declaring his income at Rs. 18.10 crores. The assessee’s income included long-term capital gains of Rs. 11.69 crores. The assessee had purchased an immovable property for Rs. 23.06 crores in December 2020, which was registered on February 1, 2021. The assessee had dis