Income Tax Act

Official PDF pages 456–460

SOURCE PDF PAGE 456
( b )   such question of law is pending before the jurisdictional High Court in
an appeal under section 260A of Income-tax Act, 1961 (43 of 1961) or
section 365 of this Act or the Supreme Court in an appeal under section
261 of the Income-tax Act, 1961 or section 367 of this Act or in a refer -
ence under section 256 of Income-tax Act, 1961 before the Jurisdictional
High Court or in a reference before the Supreme Court under section
261 of Income-tax Act, 1961 or in a Special Leave Petition under article
136 of the Constitution, against the order of the Appellate Tribunal or
the jurisdictional High Court, which is in favour of such assessee (such
case being herein referred to as the other case),
the collegium may, decide and inform the Principal Commissioner or Commissioner
not to file any appeal, at this stage, to the Appellate Tribunal under section 362(2)
or to the jurisdictional High Court under section 365(2)   in the relevant case against
the order of the Joint Commissioner (Appeals) or the Commissioner (Appeals) or
the Appellate Tribunal, as the case may be.
(2) Irrespective of anything contained in section 362(3) or section 365(2)( a ), the
Principal Commissioner or the Commissioner shall, on receipt of a communication
from the collegium under sub-section (1), direct the Assessing Officer to make an
application to the Appellate Tribunal or the jurisdictional High Court, in such form
as may be prescribed, stating that an appeal on the question of law arising in the
relevant case may be filed when the decision on such question of law becomes final
in the other case.
(3) The application referred to in sub-section (2) shall be filed within one hundred
and twenty days from the date of receipt of the order of the Joint Commissioner
(Appeals) or the Commissioner (Appeals) or of the Appellate Tribunal.
(4) The Principal Commissioner or Commissioner shall direct the Assessing Officer—
( a )   to make an application under sub-section (2), if an acceptance is received
from the assessee to the effect that the question of law in the other case
is identical to that arising in the relevant case; and
( b )   to proceed as per section 362(2)or section 365(2)( b ), if no such
acceptance is received irrespective of anything in section 362(3)or
section 365(2)( a ).
(5) If the order of the Joint Commissioner (Appeals) or the Commissioner (Appeals)
or the order of the Appellate Tribunal referred to in sub-section (1), is not in confor -
mity with the final decision on the question of law in the other case, as and when
such order is received, the Principal Commissioner or Commissioner may direct
the Assessing Officer to appeal to the Appellate Tribunal or the jurisdictional High
Court, against such order, and save as otherwise provided in this section, all other
provisions of Parts A.2 and A.3 of this Chapter shall apply accordingly.
(6) Every appeal under sub-section (5) shall be filed within a period of sixty days
to the Appellate Tribunal or one hundred and twenty days to the High Court, from
the date on which the order of the jurisdictional High Court or the Supreme Court
in the other case, is communicated to the Principal Commissioner or the Commis -
sioner (having jurisdiction over the relevant case), as per the procedure specified
by the Board in this behalf.

──────────

SOURCE PDF PAGE 457
(7) For the purposes of this section, the expression “collegium” means a collegium
comprising two or more Chief Commissioners or Principal Commissioners or Com -
missioners, as specified by the Board.
C. —Revision by the Principal Chief Commissioner or Chief
Commissioner or Principal Commissioner or Commissioner
Revision of orders prejudicial to revenue.
377.   (1) The Competent Authority may call for and examine the record of any
proceeding under this Act, and if he considers that any order passed therein
by the Assessing Officer or the Transfer Pricing Officer, as the case may be, is erro -
neous 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—
( a )   an order enhancing or modifying the assessment or cancelling the
assessment and directing a fresh assessment;
( b )   an order modifying the order under section 166; or
( c )   an order cancelling the order under section 166 and directing a fresh
order under the said section.
(2) For the purpose of sub-section (1),—
( a )   an order passed by the Assessing Officer or the Transfer Pricing Officer,
shall include—
( i )   an order of assessment made on the basis of the directions issued
by the Joint Commissioner under section 272;
( ii )   an order made by the Joint Commissioner in exercise of the powers
or in the performance of the functions of an Assessing Officer or
the Transfer Pricing Officer, conferred on, or assigned to, him by
the Board or by the Principal Chief Commissioner or Chief Com -
missioner or Principal Director General or Director General or
Principal Commissioner or Commissioner authorised by the Board
under section 241; and
( iii )   an order under section 166;
( b )   “record”shall include all records relating to any proceeding under this
Act available at the time of examination by the Competent Authority;
( c )   where any order referred to in this section and passed by the Assessing
Officer or the Transfer Pricing Officer, had been the subject matter of
any appeal filed, the powers of the Competent Authority, shall extend to
such matters as had not been considered and decided in such appeal.
(3) An order passed by the Assessing Officer or the Transfer Pricing Officer, shall be
deemed to be erroneous in so far as it is prejudicial to the interests of the revenue,
if, in the opinion of the Competent Authority, the order—
( a )   is passed without making inquiries or verification which should have
been made; or
( b )   is passed allowing any relief without inquiring into the claim; or

──────────

SOURCE PDF PAGE 458
( c )   has not been made in accordance with any order, direction or instruction
issued by the Board under section 239; or
( d )   has not been passed in accordance with any decision which is prejudicial
to the assessee, rendered by the jurisdictional High Court or Supreme
Court in the case of the assessee or any other person.
(4) No order shall be made under sub-section (1) after the expiry of two years from
the end of the financial year in which the order sought to be revised was passed.
(5) Irrespective of anything contained in sub-section (4), an order in revision under
this section may be passed at any time in the case of an order which has been passed
in consequence of, or to give effect to, any finding or direction contained in the order
of the Appellate Tribunal, the High Court, or the Supreme Court.
(6) In computing the period of limitation under sub-section (4), the following period
shall be excluded,—
( a )   the time taken in giving an opportunity to the assessee to be reheard
under section 244(2); and
( b )   the period commencing on the date on which stay on any proceeding
under this section has been granted by an order or injunction of any
court and ending on the date on which certified copy of the order or
injunction vacating the stay is received by the jurisdictional Principal
Commissioner or Commissioner.
(7) If after the exclusion of the period provided in sub-section (6), the time limit for
completion, as provided in sub-section (4) is less than sixty days, such remaining
period shall be extended to sixty days and such period of limitation shall be deemed
to have been extended accordingly.
(8) For the purposes of this section,—
( a )   “Competent Authority” means the Principal Chief Commissioner or Chief
Commissioner or Principal Commissioner or Commissioner; and
( b )   “Transfer Pricing Officer” shall have the same meaning as in section
166(17).
Revision of other orders.
378.   (1) The Competent Authority may, for any order, other than an order to
which section 377 applies, passed by an authority subordinate to him, either
of his own motion or on an application by the assessee for revision,—
( a )   call for the record of any proceeding under this Act in which any such
order has been passed;
( b )   make such inquiry or cause such inquiry to be made; and
( c )   subject to the provisions of this Act, pass such order thereon, not being
an order prejudicial to the assessee, as he thinks fit.
(2) The Competent Authority shall not of his own motion revise any order under
this section if the order has been made more than one year previously.
(3) An application for revision under this section shall be made by the assessee,
within one year from the date on which the order in question was communicated
to him or the date on which he otherwise came to know of it, whichever is earlier.

──────────

SOURCE PDF PAGE 459
(4) The Competent Authority may, if he is satisfied that the assessee was prevented
by sufficient cause from making the application within the period as provided in
sub-section (3), admit an application made after the expiry of the period specified
in that sub-section.
(5) The Competent Authority shall not revise any order under this section in the
following cases:—
( a )   where an appeal against the order lies to the Joint Commissioner
(Appeals) or the Commissioner (Appeals) or to the Appellate Tribunal,
but has not been made and the time within which such appeal may be
made has not expired;
( b )   where the appeal lies to the Joint Commissioner (Appeals) or the Com -
missioner (Appeals) or to the Appellate Tribunal, the assessee has not
waived his right of appeal; or
( c )   where the order has been made the subject of an appeal to the Joint
Commissioner (Appeals) or the Commissioner (Appeals) or to the
Appellate Tribunal.
(6) Every application by an assessee for revision under this section shall be accom -
panied by a fee of   `   500.
(7) On every application by an assessee for revision under this section, an order
shall be passed within one year from the end of the financial year in which such
application is made.
(8) In computing the period of limitation under sub-section (7), the following period
shall be excluded:—
( a )   the time taken in giving an opportunity to the assessee to be reheard
under section 244(2); and
( b )   the period commencing on the date on which stay on any proceeding
under this section has been granted by an order or injunction of any
court and ending on the date on which certified copy of the order or
injunction vacating the stay is received by the jurisdictional Principal
Commissioner or Commissioner.
(9) If after the exclusion of the period provided in sub-section (8), the time limit for
completion as provided in sub-section (7) is less than sixty days, such remaining
period shall be extended to sixty days and such period of limitation shall be deemed
to have been extended accordingly.
(10) Irrespective of anything contained in sub-section (7), an order in revision under
that sub-section may be passed at any time in consequence of or to give effect to
any finding or direction contained in an order of the Appellate Tribunal, the High
Court or the Supreme Court.
(11) For the purposes of this section,—
( a )   “Competent Authority” means the Principal Chief Commissioner or Chief
Commissioner or Principal Commissioner or Commissioner;
( b )   an order by the Competent Authority declining to interfere shall, not be
deemed to be an order prejudicial to the assessee.

──────────

SOURCE PDF PAGE 460
D. —Alternate Dispute Resolutions
1.—Dispute Resolution Committee in certain cases
Dispute Resolution Committee.
379.   (1) The Central Government shall constitute, one or more Dispute Resolution
Committees, as per the rules made under this Act, for dispute resolution in
the case of such persons or class of persons, as specified by the Board, who opt for
dispute resolution under this Chapter in respect of dispute arising from any vari -
ation in the specified order in his case and who fulfils the specified conditions, as
may be prescribed.
(2) The Dispute Resolution Committee, subject to the conditions as may be pre -
scribed, may make modifications to the variations in specified order or reduce or
80
[ waive any penalty imposed or imposable ]   under this Act, or grant immunity from
prosecution for any offence punishable under this Act, in case of a person whose
dispute is resolved under this Chapter.
(3) Irrespective of anything contained in section 275, upon receipt of the order of
the Dispute Resolution Commit tee under this section, the Assessing Officer shall,—
( a )   in a case where the specified order is a draft of the proposed order of
assessment under section 275(1), pass an order of assessment, reassess -
ment or recomputation; or
( b )   in any other case, modify the order of assessment, reassessment or rec -
omputation,
in conformity with the directions contained in the order of the Dispute Resolution
Committee within one month from the end of the month in which such order is
received.
(4) For the purposes of this section, “specified order”   means such order, including
draft order, as specified by the Board, and—
( i )   the aggregate sum of variations proposed or made in such order does
not exceed ten lakh rupees;
( ii )   such order is not based on search initiated under section 247 or requi -
sition under section 248 in the case of assessee or any other person or
survey under section 253 or information received under an agreement
referred to in section 159(1) or (2);
( iii )   where the assessee has filed a return for the tax year relevant to such
order, total income as per such return does not exceed fifty lakh rupees.
2.—Advance rulings
Interpretation.
380.   For the purposes of this Chapter,—
( a )   “advance ruling” means—
( i )   a determination by the Board for Advance Rulings in relation to
a transaction which has been undertaken or is proposed to be
undertaken by a non-resident applicant; or
80.   Substituted for “waive any penalty imposable” by the Finance Act, 2026, w.e.f.   1-4-2026 .