Section 264 — Revision of Other Orders

Section 264 of the Income-tax Act, 1961, empowers the Commissioner of Income Tax (CIT) to revise any order passed by an authority subordinate to him. This section provides taxpayers with an opportunity to seek relief from orders that they believe are unjust or erroneous. The CIT can either enhance, modify, or annul the order, or he may pass such other orders as he thinks fit. The application for revision must be made within one year from the date on which the order in question was communicated to the taxpayer or the date on which the taxpayer otherwise came to know of it, whichever is earlier. However, the CIT also has the discretion to admit an application after the expiry of the one-year period if he is satisfied that the taxpayer was prevented by sufficient cause from making the application within the prescribed time. This section is significant as it provides a remedy for taxpayers to correct errors without resorting to litigation, thus saving time and resources.

Common Litigation Flashpoints

1. Timeliness of the revision application
2. Scope of the CIT's powers under revision
3. Interpretation of 'sufficient cause' for delay
4. Extent of modifications permissible by CIT

Judgments on Section 264 — Revision of Other Orders

• GM Modular Private Limited vs Principal Commissioner of Income Tax – 1 and Ors — HC,
  A bona fide claim based on a binding judicial precedent cannot attract penal consequences even if the precedent is later reversed.
• Union of India & Anr. vs M/s. Ganpati Dealcom Pvt. Ltd. — SC,
  The 2016 Amendment Act cannot be applied retrospectively as it creates new offences and substantive changes, which cannot be applied to past transactions.