To understand powers/ responsibilities of CIT while using sec 264

Paradigm Geophysical Pty Ltd vs. DCIT (Delhi High Court)-25 Nov 2017


Some important pointers which were discussed during the case (for easy reference)- 

1- Section 264 of the Act empowers the jurisdictional Commissioner to revise any order (other than an order to which Section 263 applies) passed by an authority subordinate to him, on his own motion or on an application by the Assessee for revision. The Commissioner is empowered to call for the record of any proceeding under the Act in which such an order has been passed and may make such inquiry or cause such inquiry to be made and pass such order thereon, not being an order prejudicial to the Assessee and subject to the provisions of this Act, as he thinks fit.

2- Sec 264(4) impose certain restrictions on exercising such powers and will be subject to the below-

"""(4) The Commissioner shall not revise any order under this section in the following cases—

(a) where an appeal against the order lies to the Deputy Commissioner (Appeals) or to the Commissioner (Appeals) or to the Appellate Tribunal but has not been made and the time within which such appeal may be made has not expired, or, in the case of an appeal to the Commissioner (Appeals) or] to the Appellate Tribunal, the assessee has not waived his right of appeal; or 

(b) where the order is pending on an appeal before the Deputy Commissioner (Appeals); or 

(c) where the order has been made the subject of an appeal to the Commissioner (Appeals) or to the Appellate Tribunal.” """"

3- Thus, a Revision Petition u/s 264 of the Act can be filed against any order (including an assessment order) passed by a subordinate officer, which is otherwise appealable before Commissioner (Appeals) under section 246A of the Act or under section 253 of the Act before the Tribunal, where such appeal has not been filed and limitation period for invoking remedy has expired and the assessee has waived his right to appeal. The statutory bar is that Revision Petition cannot be entertained when an appeal has been filed before Commissioner (Appeals) or before the Tribunal in respect of such order or if no such appeal has been filed, the time limit for filing such appeal has not expired,

4- Right to file an appeal should be waived for a revision petition to be maintainable. The objective and purpose is to ensure that the Assessee does not assail the same order before two forums and that it can elect between either filing an appeal or a revision,

5- Commissioner cannot refuse to entertain a revision petition filed by the assessee under Section 264 of the Act if it is maintainable on the ground that a similar issue has arisen for consideration in another year and is pending adjudication in appeal or another forum,

6- The Commissioner while exercising power under Section 264 of the Act exercises quasi judicial powers and he must pass a speaking and a reasoned order. He cannot abdicate his authority on the ground that a similar issue has arisen and is subject matter of appellate proceedings in other years. This would be clearly contrary to the provisions of Section 264 of the Act,

For reading full text of the case law please refer  link - http://itatonline.org/archives/paradigm-geophysical-pty-ltd-vs-dcit-delhi-high-court-s-264-revision-powers-and-duties-of-the-cit-while-dealing-with-a-revision-application-filed-by-an-assessee-explained/paradigm-264-revision/