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CS Executive · Tax Laws and Practice · Procedural Compliance under Income Tax

Mehta Traders received an order from its Assessing Officer against which an appeal lies to the Commissioner (Appeals). The time for filing that appeal has not expired and no appeal has been filed. Mehta Traders applies to the Principal Commissioner for revision of the order under section 378 of the Income-tax Act, 2025. What is the position?

The Competent Authority cannot revise the order. Section 378(5)(a) bars revision where an appeal lies to the Commissioner (Appeals) or Tribunal, has not been filed, and the time to file it has not yet expired. The assessee must use or let lapse the appeal route first.

  1. AThe Competent Authority can revise the order, because revision is an alternative remedy
  2. BThe Competent Authority cannot revise the order while the appeal period has not expired and no appeal has been madeCorrect
  3. CThe Competent Authority can revise only if the fee of Rs. 500 is doubled
  4. DThe Competent Authority can revise only to enhance the assessment

Explanation

Under section 378(5)(a), revision is barred where an appeal lies, has not been made and the time to appeal has not expired. The fee is a flat Rs. 500 and is unrelated to this bar. Revision under this section cannot be prejudicial to the assessee, so enhancement is also wrong.

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