Time Limitation for revision by Commissioner under section 263 of Income Tax Act

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This topic contains 1 reply, has 2 voices, and was last updated by Dr. Ashok Dhamija Dr. Ashok Dhamija 10 months, 2 weeks ago.

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    What is the maximum time limit during which the Income tax commissioner can pass an order in revision of an assessment order passed by the Income tax assessing officer under section 263 of the Income tax Act?

  • #3308

    Section 263 of the Income Tax Act, 1961, lays down for revision of orders prejudicial to revenue. It says that the Commissioner may call for and examine the record of any proceeding under the Act, and if he considers that any order passed therein by the Assessing Officer is erroneous in so far as it is prejudicial to the interest 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 an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment.

    No order under this provisions can be made after the expiry of 2 years from the end of the financial year in which the order sought to be revised was passed. Thus, the limitation period for revision under Section 263 is two years from the end of the financial year (in which the order sought to be revised was passed).

    However, 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 an order of the Appellate Tribunal, National Tax Tribunal, the High Court or the Supreme Court; and, in these situations, the above limitation would not apply.

    It has further been laid down that in computing the period of limitation as above, the time taken in giving an opportunity to the assessee to be reheard under the proviso to Section 129 of the said Act and any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded.


    Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers.

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