Revisional Authority U/S 264 Of Income Tax Act Can Only Review Existing Orders, Cannot Issue Directions To Assessing Authority: Kerala HC

Section 264 of the Income Tax Act, 1961 empowers the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, or Commissioner to revise certain orders.

Justice Ziyad Rahman A.A. agreed with the department that powers conferred upon the revisional authority are confined to examine the sustainability of an order passed under the provisions of the Act and it does not extend to issuing orders to the assessing authority without reference to any order so passed.

The assessee/petitioner is an NRI. Initially, the assessee filed returns under Section 139(1) of Income Tax Act declaring a total income of Rs.10,99,270/- and paid a tax of Rs.1,17,448/-.

The said return was processed by the assessing officer and an intimation order was issued by the Central Processing Center under Section 143(1) demanding an amount of Rs.1,33,400/- as the tax payable by the assessee.

On receipt of such intimation order the assessee noticed certain mistakes in return originally filed (Ext.P1) and in order to cure the mistakes, a revised return (Ext.P2) was filed under Section 139(5), which was within the permissible period.

However, while submitting the revised return, by mistake, instead of showing the same as revised return, it was shown as the original return. On that reason, the same was not processed.

It is also the case of the assessee that, unfortunately, intimation order under Section 143(1) was not available in the portal for downloading the same.

Even though the assessee approached the assessing officer and other authorities concerned, for uploading the intimation order under Section 143(1), pertaining to original return, the same was not made available in the portal.

In the meantime, the assessee submitted revision petition before the Commissioner of Income Tax/5th respondent, which ultimately resulted in order (Ext.P11) by which it was dismissed.

According to the department, as per Section 264 of the Income Tax Act, 1961, the powers vested upon the revisional authority is to examine the validity of an order passed and it does not extend to issue directions to the assessing authority as sought in the revision petition.

The bench observed that when coming to the sustainability of the order passed by the Commissioner of Income Tax, the contentions raised by the department is that, going through the nature of powers vested upon the revisional authority as contemplated under Section 264, the relief as claimed in revision petition could not have been entertained. On going through the statutory stipulations contained in Section 264 of the Act, such contention has to be accepted.

It was pointed out by the standing counsel for the assessee that, intimation under Section 143 (1) was originally served upon the assessee and only thereupon, the revised return was submitted. However, such intimation was not available for downloading in the portal and the same was made available only later, to the assessee by way of Email, observed the bench.

The bench noted that therefore, the period of limitation in filing the revision as contemplated under Section 264 has to be considered, from date of receipt of intimation order or any other date which shall be established by the assessee, as date of receipt of the order by way of Email, before the assessing officer by producing the documents.

In view of the above, the bench directed the assessee to file a fresh revision petition.

Case Title: Alamana Abdul Shaji Ummerkutty v. The Income Tax Officer

Case Number: WP(C) NO.12516 OF 2023

Counsel for Petitioner/Assessee: Divya Ravindran

Counsel for Respondent/Department: Jose Joseph

Click Here To Read/Download The Order