The document discusses the remedies available to the Income Tax Department and assessees under sections 147, 154, and 263 of the Income Tax Act. It also discusses the process of revision of orders by Commissioners under section 263 if an order is found to be erroneous and prejudicial to revenue. Revisions can be made if income was underassessed, losses overassessed, or excessive reliefs were provided. Commissioners may also revise other orders under section 264. The key differences between appeals to the CIT(A) and applications for revision under section 264 are also highlighted.

1. Income Tax
Department has
Three remedies:
Sec 147: Income
escaping assessment
Sec 154: Rectification of
Mistake
Sec 263 : Revision by
CIT/PCIT/CCIT/PCCIT
Assessee has
Three Remedies
Sec 154: Rectification
of Mistake
Sec 246A: Appeal to
CIT(A)
Sec 264: Revision by
CIT/PCIT/CCIT/PCCIT

2. CCIT/PCCIT
CIT/PCIT
JC
AC/DC
ITO
TRO
INSPECTOR

3. Revision of
orders
prejudicial
to revenue.

4.  Under this Section, CIT/PCIT/CCIT/PCCIT can call for and examine
the “Records”of any proceeding in which Order has been passed by an
A.O. which is :
 Erroneous
 Prejudicial to the interest of Revenue
then CIT/PCIT/CCIT/PCCIT can pass any revisional order under this
section as he deems fit. CIT/PCIT/CCIT/PCCIT can enhance, modify or
cancel the assessment & direct for fresh assessment.

5.  Order passed by A.O. shall be deemed to be erroneous in so far as it is
prejudicial to the interest of the revenue, if in the opinion of the
CIT/PCIT/CCIT/PCCIT :
 Order passed without making inquiries or verification which should have been
made.
 The order is passed allowing any relief without inquiring into the claim.
the order has not been made in accordance with any order, direction or
instruction issued by the Board under section 119;
the order has not been passed in accordance with any decision which is
prejudicial to the assessee, rendered by the jurisdictional High Court or
Supreme Court in the case of the assessee or any other person.

6.  An Order can be said to be prejudicial to the revenue if:
Income has been under assessed
Losses have been over assessed
Income has been assessed at a lower rate
Excessive losses, deductions, allowances and reliefs have been
allowed to assessee

7. The term Record means everything which is available on
record at the time of examination of the file by
CIT/PCIT/CCIT/PCCIT & not only those things which were
available on record at the time of passing of the order by
A.O.
Example: A report of Valuation officer, which was not
available earlier at the time of passing of the order of A.O.
but is now available at time of the examination of the file by
CIT/PCIT/CCIT/PCCIT.

8.  An Opportunity of being heard must be given to assessee before any
such revisional order.
 The time limit to pass any such order by CIT/PCIT/CCIT/PCCIT is 2
Years from the end of the Financial Year in which original order of A.O.
was passed.
 Order passed under section 263 can be appealed against at ITAT level.
 CIT/PCIT/CCIT/PCCIT cannot revise matter involving appeal, means
matter which are decided or considered in any appeal cannot be
revised(Partial Merger),However CIT/PCIT/CCIT/PCCIT can revise
other matters of same order.

11. Revisio
n of
Other
Orders

12.  CIT/PCIT/CCIT/PCCIT may either on his own motion or on an application
made by assessee, call & examine the records of any proceeding ,in which
an order other than referred u/s 263 has been passed by A.O. &
CIT/PCIT/CCIT/PCCIT may pass such revisional order u/s 264 as he deems
fit.
 The CIT/PCIT/CCIT/PCCIT can revise the order on his own motion within
1Year from date of passing of the order by A.O.
 If assessee applies for revision, then he can make an application within 1
Year from the date of receiving a copy of order by Assessee.
 If assessee has asked for revision the CIT/PCIT/CCIT/PCCIT has to pass
an order within 1 Year from the end of F.Y. in which application was made
by assessee.
 Order which is prejudicial to the interest of assessee cannot be passed
under this section

13. • However once an appeal is preferred
against an order of A.O., then such order
cannot be revised by
CIT/PCIT/CCIT/PCCIT u/s 264,even if
appeal is on different
grounds/matters.(Total Merger)
• Appeal cannot be filed against order u/s
264.
• Assessee can apply for revision u/s 264 only
if :
 Time Limit to file CIT appeal has been
expired(30 days) or,
 Assessee waived his right of appeal in
writing.(where 30 days have not expired)

14. Comparison
between
appeal to
CIT(A) and
application
u/s 264

15. Appeal to CIT(A)
Time limit for appeal
shall be 30 days from the
date of receipt of order
sought to be appeal
against.
Appeal to ITAT is
possible.
Rs.250 to Rs.1000
One can go to highest
authority in the entire
appellate hierarchy i.e.
Supreme Court.
Application for revision u/s
264
Time limit to apply u/s
264 by assessee shall be 1
Year from the date of
receipt of copy of orders
sought to be revised.
No further appeal
possible
Rs.500 irrespective of the
amount of assessed
income involved.
One Man Show, no
further appeal is possible.

16. An order can be revised any number of times, but within the time
limit provided in section 263 and 264.
What can be revised u/s 263 or 264 is only an Order. In other
words, an Intimation u/s 143(1) cannot be revised under these
sections.
If the Order, which is sought to be appealed against, had been a
subject matter of appeal, then such order can be revised by
CIT/PCIT/CCIT/PCCIT u/s 263, but only to a limited extent.