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CA Final · Direct Tax Laws & International Taxation · Appeals and Revision

Mehta Textiles Ltd. received an assessment order passed by the Assessing Officer. The order was communicated to the company on 10 June, and the company says it only learnt of the order's contents on 25 June. The company has neither filed an appeal nor waived its right of appeal, and the appeal period has not expired. It now files an application to the Principal Commissioner seeking revision of the order under section 378 of the Income-tax Act, 2025. What is the correct position?

The Principal Commissioner cannot revise the order. Under section 378(5)(a), revision is barred where an appeal lies against the order, has not been filed, and the time for appealing has not yet expired. The assessee must use the appeal route or wait, so the revision application is not maintainable.

  1. AThe Principal Commissioner can revise the order, because revision is available to any assessee at any time within one year.
  2. BThe Principal Commissioner cannot revise the order, because an appeal lies against it, has not been made, and the time to appeal has not expired.Correct
  3. CThe Principal Commissioner can revise the order only if the fee of Rs. 500 is waived.
  4. DThe Principal Commissioner can revise the order, but only to enhance the assessment.

Explanation

Under section 378(5)(a), the Competent Authority shall not revise an order where an appeal lies to the Commissioner (Appeals) or the Tribunal but has not been made and the appeal period has not expired. The revision application therefore fails at this stage. The first option is wrong because the one-year limit does not override the bar in sub-section (5).

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