Income Tax Act, 2025
Section 263: Revision of orders prejudicial to revenue.—(1) The 1[Principal Commissioner or
263. Revision of orders prejudicial to revenue.—(1) The 1[Principal Commissioner or
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 2[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.
3[4[Explanation 1.]—For the removal of doubts, it is hereby declared that, for the purposes of this
sub-section,—
(a) an order passed 5[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 6[Assistant Commissioner or Deputy Commissioner]
or the Income-tax Officer on the basis of the directions issued by the 7[Joint Commissioner] under
section 144A;
(ii) an order made by the 7[Joint 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 8[Principal Chief Commissioner or Chief
Commissioner] or 9[Principal Director General or Director General] or 1[Principal Commissioner
or Commissioner] authorised by the Board in this behalf under section 120;
(b) “record”10[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 1[Principal Commissioner
or 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 5[filed on or before or after the 1st day of June, 1988], the powers of
the 1[Principal Commissioner or Commissioner] under this sub-section shall extend 11[and shall be
deemed always to have extended] to such matters as had not been considered and decided in such
appeal.]
The 1[Principal Commissioner or
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 2[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.
3[4[Explanation 1.]—For the removal of doubts, it is hereby declared that, for the purposes of this
sub-section,—
an order passed 5[on or before or after the 1st day of June, 1988] by the Assessing Officer
shall include—
an order of assessment made by the 6[Assistant Commissioner or Deputy Commissioner]
or the Income-tax Officer on the basis of the directions issued by the 7[Joint Commissioner] under
section 144A;
an order made by the 7[Joint 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 8[Principal Chief Commissioner or Chief
Commissioner] or 9[Principal Director General or Director General] or 1[Principal Commissioner
or Commissioner] authorised by the Board in this behalf under section 120;
“record”10[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 1[Principal Commissioner
or Commissioner];
where any order referred to in this sub-section and passed by the Assessing Officer had been
the subject matter of any appeal 5[filed on or before or after the 1st day of June, 1988], the powers of
the 1[Principal Commissioner or Commissioner] under this sub-section shall extend 11[and shall be
deemed always to have extended] to such matters as had not been considered and decided in such
appeal.]