By K. B. Bhujle
Advocate
21 Hapag Lloyd India Pvt. Ltd vs. Principal CIT [2022] 443 ITR 168 (Bom.) A. Y.: 2016-17 Date of order: 9th February, 2022 S. 264 of ITA, 1961
Revision — Powers of Commissioner u/s 264 — Commissioner can give relief to an assessee who has committed mistake
The petitioner is a private limited company. The assessee was entitled to the benefit of article 10 of the India - Kuwait Double Taxation Avoidance Agreement. However, for the A.Y. 2016-17, the assessee, by mistake, did not claim the said benefit both in the original return and the revised return. After passing of the assessment order u/s 143(3), the assessee realized the mistake and found that the assessee had paid an excess tax of Rs.84,61,650. The assessee, therefore, made an application to the Principal Commissioner of Income Tax u/s 264 requesting to revise the assessment order, correct the mistake and direct the Assessing Officer to grant a refund of the said amount of Rs.84,61,650.
The Principal Commissioner of Income Tax rejected the application, holding it to be untenable primarily on the ground that the assessee had not claimed at the time of filing the original return of income and the revised return of income. The Principal Commissioner held that there was no apparent error on the record in the said assessment order, which warranted exercise of jurisdiction u/s 264.
The Bombay High Court allowed the writ petition filed by the assessee and held as
