13 July 2019
trust case trust registered u/s.12A and having 80G u/s.154 order received. Application of funds not allowed Only income allowed. Can i file u/s.264 or grivence
04 June 2020
Revision of orders by Commissioner of Income-tax (CIT) Under Section 264 of Income Tax Act, 1961
An assessee aggrieved by an order passed by the Assessing Officer(AO) may file an appeal against the same, to the DyCIT (A) or the CIT(A). As an alternative remedy the assessee may prefer an application to the CIT for revising the orders passed by the AO. A remedy U/s 264 is contemplated by the Legislature only to meet a situation faced by an aggrieved assessee who is unable to approach the appellate authorities for relief and has no other alternative remedy under the Act. Even those orders which are not appealable before the Dy CIT(A) or CIT(A), may be referred by the assessee to the CIT for seeking revision or modification. — Dwarka Nath Vs ITO 57 IyTR p.349(SC).
A public duty is imposed on the revisional authority not only to entertain such application but also to deal with the same in accordance with law after giving the aggrieved party a reasonable opportunity of being heard as the discretion vested in him is a judicial discretion and has to be exercised judiciously. It is a power to be exercised in the interest of justice to the assessee. It is also the duty of the revisional authority to revise an assessment which is found to be erroneous on the admitted facts of the case — OCM Ltd (London) Vs CIT 138 ITR p.689(All). If he detects an error committed by the subordinate officer, he has been given the right to correct it and pass such orders in relation thereto, as he thinks fit — Haryana State Small Industries and Export Corporation Ltd Vs CIT 142 ITR p.293 (P & H).
By virtue of Explanation – 2 to S.264, the DyCIT(A) is deemed to be an authority subordinate to the CIT and, therefore, orders passed by the DyCIT(A) can also be revised by the CIT.
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