Objectives & Agenda : This webinar shall throw some with regards to the revision and rectification of orders passed by the income tax authorities. It shall look upon the orders which cannot be revised. This webinar shall also explain the procedure involved in the revision of an order.

1. Rectifications and Revisions under
Income Tax Act
CA. Jugal Gala

2. Credits and Acknowledgments
Anand N Krishna

3. Legends used in the Presentation
ACIT Assistant Commissioner of Income Tax
AO Assessing Officer
AY Assessment Year
Board Central Board of Direct Taxes
CIT(A) Commissioner of Income Tax (Appeals)
DCIT(A) Deputy Commissioner of Income Tax (Appeals)
FY Financial Year
HC High Court
ITAT Income Tax Appellate Tribunal
ITO Income Tax Officer
JCIT Joint Commissioner of Income Tax
NTT National Tax Tribunal
SC Supreme Court
TCS Tax Collected at Source
TDS Tax Deducted at Source

4. Presentation Schema
Introduction
Rectification of
Mistake
Amendment of
Orders
Notice to Assessee Demand Notice
Time Limit for
Completion
Filing for
Rectification
Revision of Orders
Prejudicial to
Revenue
Examination of
Orders
Orders Covered
Time Limit for
Completion
Revision of Orders
Prejudicial to
Assessee
Orders not
Revisable
Application for
Revision
Time Limit for
Completion

5. Introduction
On filing the income tax return, the Income Tax Department processes the return and may send an
intimation or order
There may be instances that the said order may contain errors or mistakes which requires
rectifications and revisions
An erroneous order issued by the Department can be challenged by the concerned assessee
Under income tax, orders can be rectified under Sec 154 and revisions can be effectuated through
Sec 263 and Sec 264

6. Rectifications

7. Rectification of Mistake – 154(1)
• Any order passed by it
• Intimation or deemed intimation under section 143(1) – Summary Assessment
• Intimation with regards to processing of statements of TDS or TCS
The Income Tax Authorities may amend the following order or intimations with a view to rectify any apparent
mistakes:
• If any matter has been considered and decided in any proceeding
• by way of appeal or revision relating to an order, then
• the authority may amend the order in relation to any matter other than the matter which has been already
considered and decided – Sec 154(1A)

8. Amendment of Orders – 154(2)
The authority concerned may
make an amendment on its
own
and shall make such
amendment for rectifying any
mistake which has been
brought to its notice
by the assessee, deductor,
collector or even AO where
the authority concerned is
the CIT(A)

9. Notice to Assessee – 154(3)
An amendment, which has the effect of enhancing an assessment or reducing a
refund or increasing the liability of the assessee, deductor or collector,
shall not be made unless the authority concerned has given notice to the
assessee, deductor or collector
of its intention to do so and has allowed the assessee, deductor or collector a
reasonable opportunity of being heard
154(4) – A writing order shall be passed to give effect of amendment
154(5) – If an amendment has the effect of reducing the assessment or reducing the liability of the assessee,
deductor or collector, the AO shall grant refund which shall be due consequent to amendment

10. Demand Notice – 154(6)
and such notice of demand shall be deemed to be issued under section 156 and the provisions of the Act shall
apply accordingly
the AO shall serve on such person a notice of demand in the prescribed form specifying the sum payable,
If an amendment has the effect of enhancing the assessment or reducing a refund already made
• The notice of demand under section 156 shall be in Form No. 7
• Form No. 28 – in case of payment of advance tax by the assessee on its own or in pursuance of order of AO

11. Time Limit – 154(7)
• No amendment shall be made after the expiry of 4 years from the end of the FY in which the order sought
to be amended was passed.
154(8) - Where an application for amendment is made by the assessee, deductor or collector
the authority shall pass an order, within a period of 6 months from the end of the month in which the
application is received by it, and
accordingly make the amendment or refuse to allow the claim

12. Filing for Rectification
• Login to E-filing website – www.incometaxindiaefiling.gov.in
• Select Rectification under e-file

13. Contd..
• Select order to be rectified and the corresponding AY

14. Contd..
• Select Request Type
• Fill in the details and click Submit

15. Revision of Orders Prejudicial to
Revenue

16. Examination of Orders – 263(1)
PCIT or CIT may call for
and examine the record of
any proceeding, and if he
considers that any order
passed 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 an order based on
the circumstances of the
case, including an order
enhancing, modifying,
cancelling or directing a
fresh assessment
• the order is passed without making inquiries or verification which
should have been made
• the order is passed allowing any relief without inquiring into the
claim
• the order has not been made in accordance with any order, direction
or instruction issued by the Board under section 119 (Instruction to
subordinate authorities)
• the order has not been passed in accordance with any decision
which is prejudicial to the assessee, rendered by the jurisdictional HC
or SC in the case of the assessee or any other person
An order passed by the AO shall be
deemed to be erroneous and
prejudicial to the interests of the
revenue, if, in the opinion of the
PCIT or CIT,

17. Orders Covered
• Assessment order made by the ACIT or DCIT or ITO on the basis of the directions issued by the JCIT
under section 144A (Powers to issue direction in certain cases);
• Order made by the JCIT authorised by the Board under section 120 (Jurisdiction of Income Tax
Authorities)
• “Record" shall include all records relating to any proceeding available at the time of examination by the PCIT
or CIT
• If any order passed by the AO had been the subject matter of any appeal filed,
• then the powers of the PCIT or CIT can extend only to such matters which had not been considered
and decided in such appeal

18. Time Limit – 263(2) and (3)
• No order shall be made after the expiry of 2 years from the end of the FY in which the order sought to be
revised was passed
• However, an order may be passed at any time to give effect to finding or direction contained in an order of
the ITAT, NTT, the HC or the SC
In computing the period of limitation, the following shall be excluded:-
• Time taken in giving an opportunity to the assessee to be reheard under the proviso to section 129 (Change
of incumbent of an office) and
• any period during which any proceeding under this section is stayed by an order or injunction of any court

19. Revision of Other Orders

20. Revision by PCIT or CIT – 264(1)
PCIT or CIT may, either of his
own motion or on an
application by the assessee for
revision,
call for the record of any
proceeding in which any order
has been passed and may make
such inquiry
and may pass such order
thereon as he thinks fit, not
being an order prejudicial to
the interest of assessee
264(2) - PCIT or CIT shall not of his own motion revise any order under this section if the order has been made
prior to more than 1 year
Explanation 1: An order by the PCIT or CIT declining to interfere shall be deemed not to be an order
prejudicial to the assessee

21. Orders not Revisable – 264(4)
PCIT or CIT shall not revise any order under this section in the following cases:
An appeal against the order lies to
the DCIT(A), CIT(A) or ITAT but has
not been made and the time
within which such appeal may be
made has not expired, or, in the
case of an appeal to the CIT(A) or
ITAT, the assessee has not waived
his right of appeal
Order is pending on an appeal
before the DCIT(A)
Order has been made the subject
of an appeal to the CIT(A) or to
the ITAT

22. Application for Revision – 264(3)
An application for
revision by the
assessee must be made
earlier of:
1 year from the date
on which the order in
question was
communicated to him
the date on which he
otherwise came to
know of it
OR
PCIT or CIT may admit an application made after the expiry of the period if satisfied that the assessee
was prevented by sufficient cause from making the application within that period
• 264(5) - Every application by an assessee for revision under this section shall be accompanied by a fee
of Rs. 500
• Explanation: In computing the period of limitation, the time taken in giving an opportunity to the assessee to
be reheard under the proviso to section 129 (Change of incumbent of an office) and any period during which
any proceeding under this section is stayed by an order or injunction of any court shall be excluded

23. Time Limit – 264(6)
• On every application by an assessee for revision, an order shall be passed within 1 year from the end of the
FY in which such application is made by the assessee for revision
• An order may be passed at any time to give effect to finding or direction contained in an order of the ITAT,
NTT, the HC or the SC
In computing the period of limitation, the following shall be excluded:-
• Time taken in giving an opportunity to the assessee to be reheard under the proviso to section 129 (Change
of incumbent of an office) and
• any period during which any proceeding under this section is stayed by an order or injunction of any court

24. Thank You
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