Revision of orders prejudicial to revenue 1
The Commissioner may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the revenue, he, may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment. Explanation.- For the removal of doubts, it is hereby declared that, for the purposes of this sub- section,- 999999. a an order passed 4 on or before or after the 1st day of June, 1988 by the Assessing Officer shall include- i an order of assessment made by the Assistant Commissioner or the Income- tax Officer on the basis of the directions issued by the Deputy Commissioner under section 144A ii an order made by the Deputy Commissioner in exercise of the powers or in the performance of the functions of an Assessing Officer conferred on, or assigned to, him under the orders or directions issued by the Board or by the Chief Commissioner or Director General or Commissioner authorised by the Board in this behalf under section 120 b record 5 shall include and shall be deemed always to have included all records relating to any proceeding under this Act available at the time of examination by the Commissioner c where any order referred to in this sub- section and passed by the Assessing Officer had been the subject- matter of any appeal, 6 filed on or before or after the 1st day of June, 1988 the powers 2. Substituted for Income- tax by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 3. Substituted by the Finance Act, 1988, w. e. f. 1- 6- 1988. Prior to the substitution, the Explanation, as inserted by the Taxation Laws Amendment Act, 1984, w. e. f. 1- 10- 1984 and amended by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988, read as under Explanation.- For the removal of doubts, it is hereby declared that, for the purposes of this sub- section, an order passed by the Assessing Officer shall include- a an order of assessment made on the basis of directions issued by the Deputy Commissioner under section 144A or section 144B and b an order made by the Deputy Commissioner in exercise of the powers or in performance of the functions of an Assessing Officer conferred on, or assigned to, him under clause a of sub- section 1 of section 125 or under sub- section 1 of section 125A. 4. Inserted by the Finance Act, 1989, w. r. e. f. 1- 6- 1988. 5. Substituted for includes by the Finance Act, 1989, w. r. e. f. 1- 6- 1988. 6. Inserted, ibid. of the Commissioner under this sub- section shall extend and shall be deemed always to have extended to such matters as had not been considered and decided in such appeal.
Inserted, ibid.
No order shall be made under sub- section 1 after the expiry of two years from the end of the financial year in which the order sought to be revised was passed.
Notwithstanding anything contained in sub- section 2 , an order in revision under this section may be passed at any time in the case of an order which has been passed in consequence of, or to give effect to, any finding or direction contained in an order of the Appellate Tribunal, the High Court or the Supreme Court. Explanation.- In computing the period of limitation for the purposes of sub- section 2 , the time taken in giving an opportunity to the assessee to be reheard under the proviso to section 129 and any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded.